Nymex Natural Gas (NG)
Natural gas drops further to as low as 3.943 so far today. Further decline is still expected with 4.252 resistance intact. Sustained trading below 3.951 support will confirm our bearish view that whole rebound from 3.255 has completed at 4.875. In such case, deeper decline should be seen to 61.8% retracement of 3.255 to 4.879 at 3.875 first and then target a retest on 3.255 low. On the upside, break of 4.252 will argue that natural gas up trend is possibly still intact and will bring a retest of 4.879 resistance first.
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
Nymex Natural Gas Continuous Contract Daily Chart