Natural Gas Price Analysis: XNG/USD edges lower to $2.67, fades bounce off key support line
- Natural Gas Price remains inactive after rising the most in three weeks.
- Failures to defend bounce off six-week-long rising support line, struggle to cross 50-SMA keep XNG/USD bears hopeful.
- Fortnight-long previous resistance line puts a floor under the Natural Gas Price.
- Cautious mood ahead of Fed Chair Jerome Powell’s speech restricts immediate XNG/USD moves.
Natural Gas Price (XNG/USD) retreats to $2.67 as energy bulls struggle to defend the previous day’s heavy run-up, the biggest in three weeks, amid anxiety surrounding Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Symposium.
That said, the XNG/USD bounced off a 1.5-month-old rising support line the previous day before reversing from the 50-SMA upside hurdle. The pullback moves, however, fail to break the resistance-turned-support line stretched from August 10, close to $2.66 by the press time.
It’s worth noting that the bullish MACD signals and the market’s cautious optimism ahead of the key event also put a floor under the energy instrument.
Even if the quote breaks the previous resistance line, the aforementioned multi-day-old rising trend line support of $2.58 appears a tough nut to crack for the Natural Gas bears.
Following that, the monthly low of $2.50 and July’s bottom surrounding $2.47 will test the XNG/USD sellers before directing them toward the Year-To-Date lows of $2.11.
On the flip side, a clear break of the 50-SMA level surrounding $2.71 becomes necessary for the Natural Gas Price to convince energy buyers.
However, the XNG/USD bulls should remain cautious unless they witness a successful upside clearance of the one-month-old horizontal resistance area surrounding $2.78-80.
Natural Gas Price: Four-hour chart
Trend: Limited downside 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.
