Nymex Natural Gas (NG)

A temporary low is in place in natural gas at 4.257 and some consolidations could be seen. But recovery should be limited by 4.556 resistance and bring fall resumption. Whole decline from 5.196 is still in progress and below 4.257 will target 3.81 key support level next.

In the bigger picture, the main question remains on whether Natural gas's fall from 6.108 is finished at 3.71 already as it just drew strong support from 61.8% retracement of 2.409 to 6.108 at 3.822. We'll stay neutral first. On the downside, break of 3.81 will revive the case that whole medium term rebound from 2.409 is finished at 6.108 already and will bring even deeper fall to retest this low. On the upside. Though, note that break of 5.196 will argue that rise from 2.409 is not finished yet and will extend for making another high above 6.108 before completion.

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