Natural Gas Daily Technical Outlook
April 27, 2011 9:58 PM EST
Nymex Natural Gas (NG)
No change in Natural gas' outlook. With 4.271 minor support intact, rebound from 3.99 is still in favor to extend further to retest 4.48 resistance. Break there will confirm that whole rebound from 3.371 has resumed and should target 100% projection of 3.731 to 4.48 from 3.99 at 4.739. On the downside, below 4.271 minor support will turn bias neutral first. But break of 3.99 is needed to indicate reversal. Otherwise, outlook will remain cautiously bullish.
In the bigger picture, price actions from 6.108 should be consolidations to rebound from 2.409 only, no change in this view. The question is whether such consolidation has completed at 3.255 already. Note that break of 4.879 resistance will complete a head and shoulder bottom reversal pattern (ls: 3.81; h: 3.255; rs: 3.731). Such development will indicate that natural gas has bottomed out at 3.255 already and will turn outlook bullish for 6.108 and above. Nevertheless, break of 3.99 support will turn focus back to 3.731 instead.
Nymex Natural Gas Continuous Contract 4 Hours Chart
Nymex Natural Gas Continuous Contract Daily Chart