Nymex Natural Gas (NG)

Natural gas drops further to as low as 4.092 so far today and intraday bias remains on the downside for 3.951 support. As noted before, break there will confirm the bearish case that whole rebound from 3.255 has completed at 4.875. In such case, deeper decline would be seen to retest this low. On the upside, break of 4.496 resistance is needed to signal near term bottoming. Otherwise, outlook will remain cautiously bearish.

In the bigger picture, current development argues that rebound from 3.255 has possibly finished at 4.879 already after hitting 61.8% projection level at 4.805. Focus now turns to 3.951 support for confirmation. Note that the corrective structure so far indicate that fall from 6.108 might not be over yet. Break of 3.951 will likely bring deeper decline through 3.255 to extend the fall from 6.108. On the upside, though, break of 4.879 will revive the case that natural gas has bottomed out at 3.255 and bring another rise towards 5.194 resistance for confirmation.

Nymex Natural Gas Continuous Contract 4 Hours Chart

width=480

Nymex Natural Gas Continuous Contract Daily Chart

width=480