Natural Gas Price Analysis: XNG/USD retreat appears elusive amid impending Golden Cross near $2.50
- Natural Gas price snaps three-day winning streak as bulls take a breather at one-week high.
- 50-SMA pierces 200-SMA from below, suggesting strength of short-term bullish bias.
- 1.5-month-old descending resistance line challenges immediate XNG/USD upside.
- Key SMAs, fortnight-long horizontal support prod Natural Gas sellers amid upbeat RSI (14).
Natural Gas Price (XNG/USD) prints the first intraday loss, so far, in four as the quote eases from a one-week high to $2.48 amid early Tuesday. In doing so, the XNG/USD takes a U-turn from a six-week-old descending resistance line.
However, the energy instrument’s sustained trading beyond the 200-SMA and 50-SMA, as well as the previous horizontal resistance, now the key support zone, keeps the Natural Gas buyers hopeful. Adding strength to the upside bias is the firmer conditions of the RSI (14) line, not overbought.
That said, the quote’s latest weakness also appears elusive as the 50-SMA crosses the 200-SMA from below and portrays a “Golden Cross” bullish signal for the XNG/USD price.
Even if the quote slips beneath the looming bullish moving average crossover, around $2.37 by the press time, a horizontal area comprising multiple levels marked since April 11, close to $2.36-35, appears a tough nut to crack for the XNG/USD bears.
Meanwhile, the Natural Gas price run-up beyond the aforementioned resistance line from early March, close to $2.51 by the press time, needs validation from the monthly high of $2.54 to convince the XNG/USD bulls.
Following that, a run-up toward the mid-March swing high of around $2.74 can’t be ruled out.
Natural Gas Price: Four-hour chart
Trend: Recovery 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.
