Natural Gas Price Analysis: XNG/USD rebound seeks acceptance from key moving averages near $2.80
- Natural Gas Price struggles to defend recovery from weekly low, prints the first daily gains in three.
- 10-DMA, 21-DMA joins impending bear cross on MACD to challenge XNG/USD buyers.
- Convergence of 200-DMA, monthly resistance line appears a tough nut to crack for Natural Gas buyers.
- XNG/USD sellers need validation from $2.65 to keep the reins.
Natural Gas Price (XNG/USD) prints mild gains around $2.78 while struggling to keep the corrective bounce off the weekly low amid early Wednesday. In doing so, the energy instrument justifies downbeat oscillators as it jostles with the key moving averages.
The looming bear cross on the MACD joins steady RSI to highlight the convergence of 10-DMA and 21-DMA, surrounding $2.80 by the press time, as the short-term key hurdle.
Even if the XNG/USD manages to cross the $2.80 resistance confluence, the $2.99 level comprising the 200-DMA and a downward-sloping trend line from early August will be a tough nut to crack for the bulls.
Above all, a slightly downward-sloping resistance line from March, close to $3.08 by the press time, challenges the Natural Gas buyers before giving them control.
On the flip side, the $2.70 round figure may lure the Natural Gas sellers before directing them towards a five-week-old rising support line, near $2.66 as we write.
Following that, the previous monthly low of around $2.50 and July’s bottom of $2.47 could check the XNG/USD sellers.
To sum up, the Natural Gas Price remains on the bear’s radar but the downside appears limited unless breaking $2.66 level.
Natural Gas Price: Daily 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.
