Nymex Natural Gas (NG)
Natural gas reversed after hitting 4.10 but downside is contained above 3.775 support so far. Intraday bias remains neutral and consolidations from 3.775 could still continue. But we'd expect strong resistance at 38.2% retracement of 4.879 to 3.775 at 4.197 to limit upside and bring fall resumption. We're still favoring the case that rebound from 3.255 is completed at 4.879 already. Below 3.775 should bring fall resumption to retest 3.255.
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