Natural Gas Price Analysis: XNG/USD rebound eyes $2.31-32 resistance confluence
- Natural Gas Price picks up bids to extend the previous day’s recovery from three-week low.
- Bullish MACD signals, trend-positive RSI suggests further advances toward the key hurdle.
- 200-SMA, multiple levels marked since mid-April prod immediate upside ahead of 13-day-old resistance line.
- XNG/USD sellers may aim for $2.20 before challenging the yearly low.
Natural Gas (XNG/USD) price remains elevated around $2.30 as buyers extend Friday’s recovery moves on early Monday, posting the biggest daily jump in nearly three weeks.
The energy instrument dropped to the lowest level since mid-April the previous day but failed to provide a decisive break of a horizontal support zone comprising multiple levels marked since late March.
The corrective bounce also gained support from the oversold RSI (14) and bullish MACD signals. That said, the RSI (14) line recently crossed the 50 level but is well below the overbought territory, which in turn joins upbeat MACD signals and the rebound from the $2.16 support area to keep the XNG/USD buyers in the driver’s seat.
It’s worth noting, however, that a convergence of the 200-SMA and a three-week-old horizontal resistance area, around $2.31-32, appears a tough nut to crack for the Natural Gas buyers.
Following that, a downward-sloping resistance line from the mid-April, close to $2.42, may prod the XNG/USD upside. Above all, the monthly high of $2.58 becomes a crucial challenge for the commodity bulls.
Alternatively, $2.20 round figure may act as an immediate support ahead of the aforementioned $2.17 level comprising a horizontal line stretched from late March.
In a case where the Natural Gas price remains bearish past $2.17, the latest multi-month low marked in April around $2.11 can please the XNG/USD sellers before directing them to the $2.00 psychological magnet.
Natural Gas Price: Four-hour chart
Trend: Limited upside expected