Natural Gas Price Analysis: XNG/USD drops back below 100-EMA but stays bullish beyond $2.67

Natural Gas Price remains depressed after reversing from three-month high and snapping four-day uptrend.
Overbought RSI conditions, 100-EMA favored recent pullback in XNG/USD prices.
Convergence of 10-EMA, fortnight-old rising trend line restricts immediate downside.
Natural Gas sellers need validation from previous resistance line stretched from March to retake control.

Natural Gas Price (XNG/USD) holds lower ground near $2.80 after printing the first daily loss in five, as well as reversing from the highest levels since March. Even so, the XNG/USD remains well above the short-term key support and keeps buyers hopeful amid the bullish MACD signals.

That said, the nearly overbought RSI (14) line joined the energy instrument’s failure to cross the 100-EMA to trigger the XNG/USD’s pullback the previous day.

The same joins the recent US dollar rebound directs the Natural Gas Price toward the $2.71 support confluence comprising a two-week-old ascending trend line and the 10-Exponential Moving Average (EMA).

However, the commodity’s further downside is likely to be challenged by the previous support line stretched from early March, around $2.67, which if broken won’t hesitate to direct the quote towards the mid-$2.00s.

On the flip side, the 100-EMA hurdle of $2.83 precedes the latest peak of around $2.93 and the $3.00 round figure to restrict the short-term upside of the Natural Gas price.

Following that, the yearly high marked in March at around $3.08 will be in the spotlight.

To sum up, the XNG/USD is likely to witness further pullback in the price but the bears are far from taking control.

Natural Gas Price: Daily chart

Trend: Limited downside expected

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