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

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.