Natural Gas Price Analysis: XNG/USD rebound needs validation from $2.90 and US data
|- Natural Gas Price remains sidelined after bouncing off two-week-old rising support line.
- Multi-day-old horizontal resistance area prods immediate upside within bullish channel.
- Looming bull cross on MACD, firmer RSI and U-turn from 50-EMA lure XNG/USD bulls.
Natural Gas Price (XNG/USD) stays defensive around $2.89 as it seeks fresh clues to extend the previous two-day winning streak amid the initial Asian session on Tuesday. In doing so, the XNG/USD struggles to extend recovery from the 50-bar Exponential Moving Average (EMA) and an upward-sloping trend line from August 02.
Even so, the upbeat RSI conditions, not overbought, join the looming bull cross on the MACD to keep the Natural Gas buyers hopeful within an ascending trend channel comprising multiple levels marked since late May, currently between $2.56 and $3.08.
It’s worth noting, however, that a seven-week-old horizontal resistance area surrounding $2.90 restricts the immediate upside of the XNG/USD.
Following that, the $3.00 psychological magnet will challenge Natural Gas buyers.
In a case where the energy instrument remains firmer past $3.00, the recent multi-month high of around $3.06 may prod the XNG/USD bulls before directing them to the stated bullish channel’s top line surrounding $3.08.
Meanwhile, the aforementioned fortnight-long rising support line and the 50-EMA, respectively near $2.84 and $2.81, limit the short-term downside of the Natural Gas Price. Also challenging the XNG/USD bears is the previous monthly peak of near $2.78.
Natural Gas Price: Four-hour chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.