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Natural Gas Technical Outlook

Fri, Dec 12 2008, 09:57 GMT
by Oil N' Gold Team

Oil N' Gold


Oil N' Gold

More Analysis and Technicals on Crude Oil, Natural Gas, Gold & Silver
Nymex Natural Gas (NG)

Natural Gas' recovery was limited at 5.792 and recent decline is possibly resuming now. Below 5.458 will bring decline towards next target of 5.192 long term support (138.2% projection of 7.36 to 6.054 from 6.978 at 5.173). On the upside, above 5.869 will indicate that another recovery is underway to 4 hours 55 EMA (now at 5.948) and above. Though, break of 6.978 resistance is needed to confirm that a short term bottom is formed. Otherwise, risk remains on the downside.

In the bigger picture, the three wave structure of the rise from 4.3 to 13.69 argues that it's part of a longer term consolidation that started at 15.65. The current fall from 13.69 should represent the third leg of such consolidation and is still in progress. Break of 5.99 now paves the way to 5.192 long term support or below. But downside should be contained by 4.3 low and bring strong rebound. On the upside, firm break of 6.978 resistance will be the first signal that such decline from 13.6 has completed. In such case, strong rally should be seen towards 8.88 resistance first.

Nymex Natural Gas Continuous Contract 4 Hours Chart

chart

Nymex Natural Gas Continuous Contract Daily Chart

chart


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