Nymex Natural Gas (NG)
The break of 3.825 low suggests that recent decline is resuming but downside momentum is not too convincing yet. Nevertheless, intraday bias will remain on the downside as long as 3.989 minor resistance holds and further fall should be seen towards 3.255 low. On the upside, above 3.989 will suggest short term bottoming and more more consolidations. But upside is expected to be limited by 4.252 resistance and bring fall resumption.
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 2.409 low 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