- Natural Gas remains sidelined after rising the most in a week.
- Bearish MACD signals, steady RSI prod XNG/USD bulls below three-week-old resistance line.
- Previous support line, tops marked in June and March prod Natural Gas buyers from retaking control.
Natural Gas Price (XNG/USD) remains sidelined near $2.60-61 during the early hours of Wednesday’s Asian session, following a stellar rebound from the 100-DMA. In doing so, the energy instrument justifies the bearish MACD signals, as well as the steady RSI (14) line.
Apart from that, a downward-sloping resistance line from June 26, close to $2.63 also challenges the XNG/USD bulls.
Following that, $2.70 and $2.80 round figures may entertain the Natural Gas buyers before directing them to May’s peak of around $2.81.
It’s worth noting that the XNG/USD bulls remain cautious unless witnessing a clear upside break of the seven-week-long previous support line, close to $2.82 by the press time.
Even if the commodity manages to remain firmer past $2.82, the previous monthly high and March’s top, respectively near $2.93 and 3.07 will act as additional upside filters to challenge the buyers.
On the flip side, three-month-old horizontal support near $2.53-52 restricts the short-term downside of the Natural Gas Price ahead of the 100-DMA support of around $2.47.
It should be observed, however, that a daily closing beneath the key DMA won’t hesitate to portray a gradual south-run toward an upward-sloping support line from April, close to $2.23 at the latest.
Natural Gas Price: Daily chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.