Natural Gas Price Analysis: 50-SMA prods XNG/USD bulls around $2.35

Natural Gas prints mild gains while poking 50-SMA amid three-day uptrend.
Clear break of fortnight-old resistance line, upbeat oscillators keep XNG/USD buyers hopeful.
Natural Gas bears remain off the table unless breaking of seven-week-old support line.

Anil Panchal FXStreet

Natural Gas (XNG/USD) price remains mildly bid near $2.33 amid early Tuesday morning, up for the third consecutive day by the press time.

In doing so, the energy asset justify the previous week’s rebound from an upward-slopping support line from the mid-April, as well as an upside break of a fortnight-long resistance-turned-support. Adding strength to the upside bias are the bullish MACD signals and the upbeat RSI (14) line, not overbought.

However, the 50-SMA challenges the XNG/USD bulls around $2.35, a break of which highlights the 200-SMA hurdle surrounding $2.40.

In a case where the Natural Gas Price remains firmer past $2.40, tops marked during late May around $2.60 may act as the last defense of the bears before directing traders toward the previous monthly peak of around $2.82.

Meanwhile, XNG/USD pullback from the 50-SMA needs validation from the previous resistance line, near $2.30 at the latest.

Even so, an upward-sloping support line from April 14, close to $2.18 by the press time, appears a tough nut to crack for the Natural Gas bears and can restrict the commodity’s further downside.

Following that, a slump towards refreshing the yearly low, currently around $2.11 can’t be ruled out.

Natural Gas: Four-hour 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.

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