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.
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.
