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Natural Gas Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 12/16/09


Nymex Natural Gas (NG)

Natural gas's rally extends further as expected and reaches as high as 5.569 so far. At this point, intraday bias remains on the upside as long as 5.37 minor support holds and further rise should be seen to 61.8% projection of 2.409 to 5.318 from 4.157 at 5.955 next. On the downside, below 5.37 minor support will turn intraday bias neutral and bring retreat, probably to 4 hours 55 EMA (now at 5.159). Nevertheless, downside should be contained above 4.837 support and bring rally resumption.

In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005 and might have completed at 2.409 already. Rise from 2.409 resumes as expected after consolidations from 5.318 completed. Current rally should now be targeting 38.2% retracement of 13.694 to 2.409 at 6.72 and beyond. Break of 4.432 support is needed to indicate that natural gas has topped. Otherwise, outlook will remain bullish.

Nymex Natural Gas Continuous Contract 4 Hours and Daily Chart

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