Natural Gas Price Analysis: XNG/USD retreats towards $2.24 within immediate bearish channel
- Natural Gas price fades bounce off the lowest levels since August 2020.
- Three-week-old bearish channel, 200-SMA prods XNG/USD’s corrective bounce.
- Bullish MACD signals, short-term SMA confluence puts a floor under the Natural Gas price.
Natural Gas (XNG/USD) price pares intraday gains around $2.33 during early Monday. In doing so, the energy asset eases from an upper line of the three-week-old bearish channel.
However, the bullish MACD signals, as well as a convergence of the 21-SMA and 50-SMA, around $2.24, restrict the immediate downside of the XNG/USD.
In a case where the Natural Gas price drops below $2.24, the stated channel’s support around $2.11, will be crucial to watch as it becomes the fresh low since August 2020 from which the XNG/USD previously bounced.
Should the quote remains bearish past $2.11, the odds of witnessing a slump toward the $2.00 round figure can’t be ruled out. However, the July 2020 high surrounding $1.95 could challenge the Natural Gas bears afterward.
On the flip side, a clear break of the stated channel’s top line, close to $2.35, isn’t an open invitation to the XNG/USD bulls as the 200-SMA hurdle of near $2.44 can act as the final defense of the Natural Gas bears.
Even if the commodity price remains firmer past $2.44, the mid-March swing low around $2.48 and the $2.50 round figure can act as additional upside filters before giving control to the Natural Gas buyers.
Natural Gas Price: Four-hour 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.
