Natural gas' sharp fall from 4.879 suggests that a temporary top is formed at 4.879 and intraday bias is turned neutral for the moment. Note bearish divergence condition in 4 hours MACD. Further break of 4.322 support will suggest that whole rebound from 3.255 is possibly finished too after hitting 61.8% projection level at 4.805. In such case, deeper decline would be seen to 3.951 support and below. Nevertheless, before a break of 4.322, another rise remains in favor and above 4.879 will target 5.194 resistance next.
In the bigger picture, medium term rebound from 3.255 is still in progress as long as 3.951 support holds. Break of 5.194 resistance confirm that whole decline from 6.108 (2010 high) has finished with three waves down to 3.255. Such development will also suggest that the rebound from 2.409 (2009 low) is resuming for 6.108 and above, possibly to 38.2% retracement of 13.694 (2008 high) to 2.409 at 6.72. On the downside, break of 3.951 support, though, will put focus back to 3.255 support instead.
Nymex Natural Gas Continuous Contract 4 Hours Chart
Nymex Natural Gas Continuous Contract Daily Chart