Natural Gas Price Analysis: 21-DMA prods XNG/USD bulls near $2.65
- Natural Gas Price struggles to extend week-start rebound, retreats from intraday high of late.
- Three-week-old bullish triangle, sustained trading above $2.50 support confluence keeps XNG/USD buyers hopeful.
- Bearish MACD signals, steady RSI challenge bulls amid sluggish session.
Natural Gas Price (XNG/USD) retreats from intraday high as bulls and bears jostle around $2.65 during early Tuesday. In doing so, the energy instrument struggles to extend the week-start recovery from the lowest levels in three weeks amid a lack of fresh directives and a cautious mood ahead of Wednesday’s key US inflation data.
Apart from that, the 21-DMA hurdle of around $2.66 and bearish MACD signals, as well as the steady RSI (14) line, also challenge the XNG/USD buyers.
However, the quote’s sustained trading beyond the $2.50 support confluence including the 50-DMA and a five-week-old rising trend line keeps the buyers hopeful within a three-week-old bullish triangle.
Hence, the XNG/USD bulls may want to wait for a clear break of the 21-DMA hurdle of around $2.66 to initiate fresh long positions. Even so, the stated triangle’s top line can prod the commodity buyers around the $2.70 round figure before giving them control.
Following that, the Natural Gas Price can quickly rise toward May’s peak of $2.81 before challenging the previous monthly high of around $2.93.
Alternatively, the stated triangle’s bottom line, close to $253 at the latest, precedes the $2.50 support confluence to restrict short-term XNG/USD downside.
Overall, the Natural Gas Price remains on the bull’s radar but the road to the upside appears long and bumpy.
Natural Gas Price: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
