Nymex Natural Gas (NG)
Natural gas' fall extends further to as low as 3.861 so far today and met mentioned target of 61.8% retracement of 3.255 to 4.879 at 3.875. Intraday bias remains on the downside and further fall should be seen to 161.8% projection of 4.879 to 4.2552 from 4.96 at 3.482 next. On the upside, above 3.992 minor resistance will turn intraday bias neutral and bring recovery. But outlook will remain bearish as long as 4.252 support turned resistance holds.
In the bigger picture, current development suggests that medium term decline from 6.108 is still in progress. Such decline would now extend lower to correct the rebound from 2009 low of 2.409. Though, we'd expect strong support above there and bring another rise. Note that long term down trend should have bottomed out at 2.409 and we'd expect another rise to push natural gas through 6.108 resistance towards 38.2% retracement of 13.694 to 2.409 at 6.72 in medium term.
Nymex Natural Gas Continuous Contract 4 Hours Chart
Nymex Natural Gas Continuous Contract Daily Chart