Tue, Dec 16 2008, 11:30 GMT
by Oil N' Gold Team
Nymex Natural Gas (NG)
Natural Gas's touching of 5.792 minor resistance indicates that an intraday low is in place at 5.458. Strong rebound might now be seen. Though, break of 6.978 resistance is needed to confirm that a short term bottom is formed. Otherwise, risk remains on the downside. Below 5.458 will indicate that recent decline has resumed for 5.192 long term support (138.2% projection of 7.36 to 6.054 from 6.978 at 5.173).
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 and Daily Chart
Published on Tue, Dec 16 2008, 11:31 GMT
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