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Natural Gas Technical Outlook
Mon, Dec 22 2008, 15:14 GMT
by Oil N' Gold Team
Oil N' Gold
Natural gas continues to trade with a soft tone today. Recent down trend is still in progress as long as 5.855 resistance holds, targeting 5.192 long term support next (138.2% projection of 7.36 to 6.054 from 6.978 at 5.173). On the upside, though, above 5.855 wail argue that a short term bottom is in place and bring stronger rebound.
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
Published on
Mon, Dec 22 2008, 15:15 GMT
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Published On Tue, Dec 30 2008, 10:42 GMT
- Natural Gas Technical Outlook
Published On Mon, Dec 22 2008, 15:14 GMT
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