Natural Gas Daily Technical Outlook

Intraday bias in natural gas remains neutral for the moment as sideway consolidations from 3.825 might be in progress. Nevertheless, in case of another rise, upside should be limited 4.252 resistance and bring another fall. We'd expect current decline from 4.879 to resume sooner or later to retest 3.255 low.

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.

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