Natural Gas Price Analysis: XNG/USD grinds at multi-day top, focus on $3.05 and US employment data
- Natural Gas Price seesaws at three-week high, lacks momentum of late.
- Sluggish oscillators, pre-NFP trading lull prod XNG/USD traders at multi-day high.
- Convergence of 200-DMA, six-month-old resistance line appears a tough nut to crack for Natural Gas buyers.
- XNG/USD sellers need confirmation of 15-week-old rising wedge.
Natural Gas Price (XNG/USD) sticks to mild gains around $2.90 as markets await the all-important US Nonfarm Payrolls (NFP) on Friday. In doing so, the XNG/USD also challenges the previous day’s retreat from a three-week high while bracing for the second consecutive weekly gain.
Also read: Nonfarm Payrolls Preview: Four scenarios for a jobs report set to test US economic resilience
That said, the sluggish MACD signals and upbeat RSI suggest fewer hardships for the Natural Gas buyers unless the quote stays beyond a one-week-old rising support line, close to $2.86 by the press time.
It’s worth noting that July’s peak of $2.78 and a three-month-old ascending trend line surrounding $2.65 could challenge the XNG/USD bears past $2.86.
In a case where the Natural Gas Price remains weak below $2.86, the energy instrument confirms a rising wedge bearish chart formation suggesting a theoretical target of $1.79.
However, April’s bottom of around $2.11 and the $2.00 psychological magnet can challenge the XNG/USD bear on their rush to $1.79.
Alternatively, the latest high of around $3.00 round figure guards immediate recovery of the Natural Gas Price ahead of a convergence of the 200-DMA and descending resistance line from early March, close to $3.05.
Following that, the stated wedge’s top line, close to $3.12 could act as the final defense of the XNG/USD bears.
Natural Gas Price: Daily chart
Trend: Pullback 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.
