Natural Gas Eyes Extending its Downtrend Move - N Gas Price Technical Analysis
Natural Gas Technical Forecast
- Natural Gas price action
- NG Charts
Natural Gas – A Sharp U- Turn
Last week, natural gas rallied to $2.922 – its highest level in in over nine months. However, the price slipped then settled below $2.900 handle. This week, N gas has opened with a gap to the downside at $ 2.752.
Alongside this, the relative Strength Index (RSI) abandoned the overbought territory then fell sharply from 68 to 54 reflecting a weaker uptrend momentum.
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Nat-Gas DAILY Price CHART (Jan 15, 2018 – Nov 14, 2019) Zoomed Out
Nat-Gas DAILY Price CHART (Aug 27 – Nov 14, 2019) Zoomed IN
Looking at the daily chart, we notice at the start of this week natural gas opened below the neckline of inverted head and shoulders and declined towards the lower trading zone $2.650- $2.735. Yesterday, sellers pressed below the low end however, the price reverted back and closed above.
Hence, a successful close below the low end could send natural gas towards the vicinity of $2.556-52. Nevertheless, the weekly support levels marked on the chart (zoomed in) should be kept in focus.
That said, a close in the other direction i.e. above the high end of the zone (the neckline of inverted head and shoulders) could push natural gas towards $2.799. However, the daily and level underlined on the chart should be monitored.
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Natural Gas price Four-Hour PRICE CHART (Oct 24 – Nov 14, 2019)
From the four- hour chart, we notice on Thursday natural gas reversed course. This week the price has started a downtrend move after breaking below $2.780.
Thus, sellers may resume bearish price action below $2,617 towards $2.552. In that scenario, the weekly support level underscored on the chart would be worth monitoring.
On the other hand, a break above $2.771 could see the price trading even higher towards $2.799. Although, the daily resistance level underlined on the chart should be considered.
See the chart to know more about key levels to monitor in a further bullish/bearish move.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.