Currently Natural Gas is trading at $2.70, making a weak attempt at recovery having bounced off support at $2.66. Natural Gas has retraced slightly to form a bullish trendline, however, it remains below both the 50 EMA at $2.78 and the 100 EMA at $2.86. This makes the overall market bias still bullish.
The next major resistance is at $2.74, with $2.81 as the next level of resistance. Above those levels are major supply zones which are expected to hold further selling around $2.87. In the opposite direction, critical support is at $2.66. If this level fails to hold, then more downside is expected at $2.60.
RSI is recovering from oversold territory to about 40. While Natural Gas stays below its key moving averages, rallies should be considered as corrections rather than a Bullish reversal.
