Natural Gas Price Analysis: XNG/USD grinds at multi-day top, focus on $3.05 and US employment data
|- Natural Gas Price seesaws at three-week high, lacks momentum of late.
- Sluggish oscillators, pre-NFP trading lull prod XNG/USD traders at multi-day high.
- Convergence of 200-DMA, six-month-old resistance line appears a tough nut to crack for Natural Gas buyers.
- XNG/USD sellers need confirmation of 15-week-old rising wedge.
Natural Gas Price (XNG/USD) sticks to mild gains around $2.90 as markets await the all-important US Nonfarm Payrolls (NFP) on Friday. In doing so, the XNG/USD also challenges the previous day’s retreat from a three-week high while bracing for the second consecutive weekly gain.
Also read: Nonfarm Payrolls Preview: Four scenarios for a jobs report set to test US economic resilience
That said, the sluggish MACD signals and upbeat RSI suggest fewer hardships for the Natural Gas buyers unless the quote stays beyond a one-week-old rising support line, close to $2.86 by the press time.
It’s worth noting that July’s peak of $2.78 and a three-month-old ascending trend line surrounding $2.65 could challenge the XNG/USD bears past $2.86.
In a case where the Natural Gas Price remains weak below $2.86, the energy instrument confirms a rising wedge bearish chart formation suggesting a theoretical target of $1.79.
However, April’s bottom of around $2.11 and the $2.00 psychological magnet can challenge the XNG/USD bear on their rush to $1.79.
Alternatively, the latest high of around $3.00 round figure guards immediate recovery of the Natural Gas Price ahead of a convergence of the 200-DMA and descending resistance line from early March, close to $3.05.
Following that, the stated wedge’s top line, close to $3.12 could act as the final defense of the XNG/USD bears.
Natural Gas Price: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.