Natural Gas (XNG/USD) price prints the first daily loss in three as bears prod $2.42 level during early Monday morning in Europe.
In doing so, the energy instrument extends the week-start pullback from a downward-sloping resistance line from early March.
Given the sluggish MACD signals, the XNG/USD’s latest retreat is likely to extend towards a short-term key support around $2.35-34 comprising the 100-bar SMA, 200-bar SMA and a three-week-old ascending trend line.
In a case where the Natural Gas price drops below $2.34, the odds of witnessing a slump towards the Year-To-Date (YTD) low marked in April around $2.11 can’t be ruled out. However, the $2.00 appears a tough nut to crack for the XNG/USD bears and can prod the quote’s further downside.
Alternatively, an upside clearance of the aforementioned resistance line, close to $2.48 at the latest, can convince the Natural Gas buyers to aim for the latest swing high surrounding $2.58.
Following that, the 50% and 61.8% Fibonacci retracement levels of the XNG/USD downturn from early March to mid-April, near $2.60 and $2.71 respectively, can challenge the Natural Gas buyers before the March 08 swing high of $2.78 and the $3.00 gain the market’s attention.
To sum up, the Natural Gas price remains on the bear’s radar but the road towards the south appears long and bumpy.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
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