Natural Gas Price Analysis: XNG/USD retreats from multi-day-old resistance line to around $2.60
- Natural Gas consolidates the biggest daily jump in a month by retreating from three-week high.
- RSI conditions favor pullback moves from 3.5-month-old resistance line.
- April’s top restricts immediate downside, 50-EMA appears the key support.
Natural Gas Price (XNG/USD) prints the first daily loss in five as it eases from the highest levels in three weeks to $2.60 early Friday. In doing so, the XNG/USD consolidates the biggest daily gains in one month as energy market players reassess the previous day’s rally amid a light calendar and mixed sentiment.
That said, the energy instrument’s failure to provide a daily closing beyond a downward-sloping resistance line from March 03 appears to favor the intraday sellers of the Natural Gas.
Adding strength to the pullback moves is the RSI (14) line that retreats from the nearly overbought territory. As a result, the Natural Gas Price may witness further declines, at least for the short term.
However, April’s monthly high of around $2.58 and multiple levels marked near the $2.50 round figure limit the immediate downside of the XNG/USD.
Following that, the 50-day Exponential Moving Average (EMA) around $2.45 becomes crucial to watch for the Natural Gas bears as a break of which could direct the quote toward the monthly support line of near $2.30.
On the flip side, XNG/USD recovery needs to provide a daily close beyond the latest peak of around $2.63 could quickly propel the Natural Gas Price to the 61.8% Fibonacci retracement level of March-April moves, near $2.71.
It should be noted, however, that the previous monthly high of around $2.81 acts as the final defense of the Natural Gas bears.
Natural Gas Price: Daily chart
Trend: Limited 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.
