Natural Gas Price Weekly Technical Forecast: Exhausted Downtrend Move
Natural Gas Technical Analysis
- Natural gas price action
- Nat gas Charts
Natural Gas – Slower Bearish Momentum
On Dec 8, natural gas printed $2.213- its lowest level in over three months. The price rallied after as some sellers took profit. The weekly candlestick closed on Friday with a 0.9% gain.
Alongside this, the Relative Strength Index (RSI) rose from 32 to 45 reflecting a weaker downtrend move.
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Nat-Gas DAILY Price CHART (May 15, 2018 – DEC 19, 2019) Zoomed Out
Nat-Gas DAILY Price CHART (Sep 27 – DEC 19, 2019) Zoomed IN
Looking at the daily chart, we notice on Dec 9 natural gas rallied to a higher trading zone 2.210 -2.340. However, the price failed in multiple occasions to move to the higher trading zone, reflecting that some sellers were still holding their positions.
A close below the low end of the zone may cause more sellers to join the market. This may lead the price towards $2.124. Further close below this level could mean more bearishness towards $2.033. In that scenario, the weekly support levels underlined on the chart (zoomed in) should be kept in focus as some sellers could take profit at these points.
On the flip-side, any failure in closing below the low end of the zone highlights seller’s hesitation. This may cause a price reversal towards the high end of the zone. Further close above the high end opens the door for buyers to correct the downtrend move and push natural gasde towards the vicinity of $2.490-82. That said, the weekly resistance levels marked on the chart should be watched closely.
Natural Gas price Four-Hour PRICE CHART (Nov 5 – DEc 19, 201
From the four- hour chart, we notice on Dec 8 natural gas opened with a gap (exhaustion gap following runaway gap) signaling that downtrend move is nearing its end. Yesterday, the price broke below the uptrend line originated from the Dec 9 low at $2.199 eyeing a test of $2.179.
A break below $2.093 could press natural gas towards $2.033. Yet, the weekly support level underlined on the chart should be considered. On the other hand, a break above $2.298 may push the price towards $2.340. Although, the daily resistance level underscored on the chart should be monitored.
See the chart to know more about key levels to monitor in a further bullish 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.