Natural Gas Price Analysis: XNG/USD fades bounce off one-week-old support near $2.30
- Natural Gas price pares weekly gains as sellers approach short-term key support zone.
- Failure to cross 100-SMA, downbeat oscillators keep XNG/USD bears hopeful.
- Clear break of $2.27 becomes necessary for the Natural Gas Price to renew monthly low.
Natural Gas Price (XNG/USD) remains pressured around $2.29 during early Friday, reversing the previous day’s corrective bounce to consolidate the weekly gains.
In doing so, the XNG/USD price extends Thursday’s U-turn from the 100-SMA towards a one-week-old horizontal support area surrounding $2.28-27.
Not only the failure to cross the 100-SMA but bearish MACD signals and mostly steady RSI (14) line also suggests further downside of the Natural Gas Price.
As a result, the aforementioned horizontal support area is less likely to hold the XNG/USD bears captive for a long.
Following that, the monthly low marked the last Friday around $2.14 and the yearly bottom of $2.11, flashed during late April, will be in the spotlight. It’s worth observing that the XNG/USD weakness past $2.11 makes it vulnerable to dropping toward the $2.00 psychological magnet.
On the contrary, the 100-SMA joins the 50% Fibonacci retracement level of the commodity’s April-May run-up to highlight $2.35 as the short-term key resistance confluence.
However, a clear upside break of $2.35 isn’t an open invitation to the Natural Gas buyers as a downward-sloping resistance line from April 19, close to $2.38 by the press time, quickly followed by the $2.40 round figure, could challenge the XNG/USD bulls.
Natural Gas Price: Four-hour chart
Trend: Further downside expected