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Natural Gas Technical Outlook

Fri, Dec 19 2008, 10:19 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)

No change in Natural Gas' outlook as it's still bounded in range of 5.458 and 5.855. Further decline is still in favor to retest 5.458 low. Break will confirm recent fall has resumed for 5.192 long term support (138.2% projection of 7.36 to 6.054 from 6.978 at 5.173). On the upside, above 5.855 will indicate that consolidation from 5.458 is still in progress for another rise. 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 and Daily Chart


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