Nymex Natural Gas (NG)
Intraday bias in natural gas remains for the moment. Consolidation is expected to be limited below 4.1 resistance and bring another fall. Below 3.731 will extend recent decline from 4.879 to 61.8% projection of 4.496 to 3.775 from 4.10 at 3.654 first and then a retest on 3.255. Though, touching of 4.10 will indicate that a short term bottom is formed and would bring lengthier consolidations before staging another fall.
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