Gold and Silver Info: Natural Gas Daily Technical Outlook

Thursday, November 25, 2010

Natural Gas Daily Technical Outlook

ONG Focus | Technical | Written by Oil N' Gold | Wed Nov 24 10 07:07 ET

Natural gas is losing some upside momentum but intraday bias remains mildly on the upside with 4.058 minor support intact. Current rise is still expected to continue towards falling trend line resistance (now at 4.4 level). On the downside, below 4.058 minor support will turn intraday bias neutral again. But after all, we'd still favor another rise as long as 3.71 support holds, even in case of deep retreat.

In the bigger picture, current development raises the possibility that fall from 6.108 has indeed finished with three waves down to 3.255. That is, it's merely a correction to rebound from 2.409. There is no confirmation of reversal yet and key focus will be on mentioned trend line resistance from 6.108, now at around 4.4 level. Sustained break there will likely pave the way the another high above 6.108 in medium term. Though, a break below 3.255 will turn focus back to 2.409 low instead.

Nymex Natural Gas Continuous Contract 4 Hours Chart