Natural Gas Daily Technical Outlook

Nymex Natural Gas (NG)

Natural gas's recovery from 3.99 extends further and the break of 4.195 minor resistance mixes up the near term outlook. We'll turn neutral first. On the downside, break of 3.99 will reaffirm the bearish case that rebound from 3.731 is completed at 4.48 already. In such case, whole fall from 4.87 should be resuming for 100% projection of 4.879 to 3.731 from 4.48 at 3.332 first. On the upside, however break of 4.48 will invalidate our bearish view and bring another rise to retest 4.87 resistance instead.

In the bigger picture, there is no change in the view that we're favoring decline from 6.108 to extend lower. Below 3.731 will bring deeper fall through 3.255 support towards 2009 low of 2.409. However, as we believe that the long term down trend has bottomed out at 2.409 already. Strong support is expected above 2.409 to contain downside and bring another medium term rise.

Nymex Natural Gas Continuous Contract 4 Hours Chart

Nymex Natural Gas Continuous Contract Daily Chart

(Source: http://www.ibtimes.com/articles/134748/20110415/natural-gas-daily-technical-outlook.htm)