Natural Gas Price Analysis: XNG/USD prods immediate support line around $2.70, death cross lures bears

Natural Gas holds lower ground near intraday bottom after reversing from two-week high.
Bearish moving average crossover, downbeat oscillators favor XNG/USD sellers.
Natural Gas recovery appears elusive below $2.80; $2.62 appears a tough nut to crack for sellers.

Anil Panchal FXStreet

Natural Gas Price (XNG/USD) drops more than 1.0% during early Monday to $2.69, reversing from 13-day high marked the previous day, as energy buyers retreat at the start of the key week comprising top-tier data/event. In doing so, the energy instrument snaps four-day winning streak while posting the biggest daily loss, so far, since July 17.

That said, a one-week-old ascending trend line restricts immediate downside of the XNG/USD near $2.69.

However, the 50-SMA pierces the 200-SMA from above and portrays the “death cross” bearish moving average crossover to lure the XNG/USD sellers. Adding strength to the downside bias is the looming bear cross on the MACD and a descending RSI (14) line, not oversold.

With this, the Natural Gas Price is likely to break the immediate support line and can drops towards the stated SMA confluence surrounding $2.62.

In a case where the XNG/USD remains bearish past $2.62, the odds of witnessing a downturn towards the monthly low of around $2.47 can’t be ruled out.

On the flip side, a five-week-old horizontal resistance area surrounding $2.79-80 restricts immediate recovery of the Natural Gas Price.

Following that, tops marked in June and March, respectively near $2.98 and $3.07, will be in the spotlight.

Natural Gas Price: Four-hour chart

Trend: Further 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.

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