Natural Gas Daily Technical Outlook

Natural gas is still bounded in sideway consolidations above 3.86 temporary low and intraday bias remains neutral. More consolidations could still be seen. But upside is expected to be limited well below 4.252 support turned resistance and bring another fall. As discussed before, whole bound from 3.255 is finished and current fall from 4.879 is expected to extend further to 161.8% projection of 4.879 to 4.2552 from 4.96 at 3.482 next. We'll stay bearish as long as 4.252 support turned resistance holds.

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 there 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.

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