Natural Gas Price Analysis: 200-EMA remains a key barrier
- Natural Gas is showing a sideways auction around $2.30 ahead of US EIA inventory data.
- Strength came for the Natural Gas price amid a sell-off in oil despite production cuts by Saudi Arabia.
- Natural Gas price has shifted into a bullish trajectory after a breakout of the Falling Channel chart pattern.
Natural Gas (XNG/USD) price is demonstrating a back-and-forth action around $2.30 in the London session. The energy instrument is struggling to find any direction as investors are awaiting the release of the stockpiles for the week ending June 02 by the United States Energy Information Administration (EIA) on Thursday.
Strength came for the Natural Gas price amid a sell-off in oil despite the announcement of production cuts by Saudi Arabia to provide some cushion.
On a broader note, pressure on Natural Gas prices could be created as global central banks are preparing for a fresh interest rate hike to tame stubborn inflation.
Natural Gas price has shifted into a bullish trajectory after a breakout of the Falling Channel chart pattern formed on an hourly scale. The energy instrument is struggling to surpass the immediate resistance plotted around $2.35.
The 200-period Exponential Moving Average (EMA) at $2.34 is consistently capping the upside in the Natural Gas price.
The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, indicating a non-directional performance.
Should the asset break above June 05 high at $2.37, the Natural Gas price will move toward May 31 high at $2.44 followed by May 23 low around $2.50.
In an alternate scenario, a decisive drop below June 06 low at $2.24 will drag the asset toward June 01 low at $2.18. A break below the latter will expose the asset to May 05 low around $2.10.
Natural Gas hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
