Natural Gas Price Analysis: XNG/USD pares the biggest daily loss in a week near $2.66, bears keep control
- Natural Gas Price rebounds from weekly low, snaps two-day losing streak with mild gains.
- Clear rejection of 13-day-old bullish channel, looming bear cross on MACD and steady RSI keeps XNG/USD sellers hopeful.
- Key Fibonacci retracement levels, 50-EMA lure Natural Gas bears.
- XNG/USD bulls need validation from $2.78 to retake control.
Natural Gas Price (XNG/USD) consolidates the weekly loss to around $2.66 in Thursday’s mid-Asian session, after declining heavily in the last two consecutive days.
That said, the XNG/USD’s downside break of the two-week-old bullish channel’s support allowed the energy bears to tighten their grips the previous day. Adding strength to the quote’s downside bias is its decline below the 61.8% Fibonacci retracement of the March-April downturn.
Furthermore, the impending bear cross on the MACD and steady RSI (14) line are some of the extra catalysts that suggest further downside of the Natural Gas Price.
Though, a 50% Fibonacci retracement level of $2.60 appears the immediate support to watch for the Natural Gas sellers. However, the 50-day Exponential Moving Average (EMA) surrounding $2.53 appears a tough nut to crack for the XNG/USD bears afterward.
On the contrary, the golden Fibonacci ratio, the 61.8% Fibonacci retracement level of $2.71, restricts the short-term recovery of the Natural Gas Price.
However, the XNG/USD bulls remain off the table unless witnessing a clear upside break of the stated channel’s lower line, near $2.76 by the press time.
In a case where the Natural Gas Price remains firmer past $2.76, the odds of witnessing a rally toward the $3.00 psychological magnet can’t be ruled out.
Natural Gas Price: Daily chart
Trend: Further weakness expected