Natural Gas Price Analysis: XNG/USD eyes further upside past $2.30 on crossing nearby key hurdle
- Natural Gas price grinds higher after rising the most in a month the previous day.
- Clear break of 100-SMA, one-week-old descending trend line joins bullish MACD signals to lure XNG/USD buyers.
- 1.5-month-long horizontal hurdle comprising 200-SMA appears a tough nut to crack for Natural Gas buyers.
Natural Gas (XNG/USD) remains mildly bid around the higher levels in two weeks as it grinds higher past short-term key resistance confluence, now support around $2.30, during early Tuesday in Europe. In doing so, the energy instrument bounces off seven-week-old horizontal support.
The first sustained break of the 100-SMA in nearly a month joins the XNG/USD run-up beyond a one-week-old descending trend line to lure Natural Gas buyers. Adding strength to the upside bias are the bullish MACD signals.
With this, the Natural Gas price is all set to challenge the six-week-old horizontal resistance area including the 200-SMA, around $2.47-48 by the press time.
Following that, the quote’s run-up towards the mid-March swing high of around $2.75 and then to the previous monthly peak of $3.08 can’t be ruled out. That said, March 08 peak surrounding $2.78 can act as an intermediate halt during the run-up between $2.75 and $3.08.
On the flip side, the resistance-turned-support confluence restricts the short-term downside of the Natural Gas price to around $2.28.
Should the quote drops back below $2.28, the aforementioned horizontal support comprising multiple levels marked since late February, around $2.13-12, will be important to watch as it holds the key to the commodity’s fall towards the $2.00 round figure.
Natural Gas Price: 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.
