- Natural Gas Price remains firmer for the third consecutive day after bouncing off two-week-old ascending support line.
- Impending bull cross on MACD, sustained U-turn from 50-SMA adds strength to upside bias.
- Five-week-old falling trend line appears a tough nut to crack for XNG/USD bulls.
Natural Gas Price (XNG/USD) remains on the front foot around $2.71 as it prints a three-day uptrend amid Friday’s Asian session. In doing so, the energy instrument defends the early-week rebound from a fortnight-old rising support line.
Apart from a successful bounce off the short-term key trend line support, the XNG/USD’s sustained trading beyond the 50-SMA and a looming bull cross on the MACD indicator also keeps the Natural Gas buyers hopeful.
As a result, the energy buyers are marking another attempt to cross the key resistance line stretched from May 19, around $2.75 by the press time. Also acting as an upside filter is the monthly high of around $2.79, as well as the $2.80 round figure.
Following that, the previous monthly peak of near $2.82 and the mid-March swing high of near $2.86 will be in the spotlight.
On the contrary, the aforementioned support line from June 12, close to $2.64 by the press time, restricts the immediate downside of the Natural Gas Price ahead of the 50-SMA support of $2.57.
It should be noted, however, that the XNG/USD’s weakness past $2.57 will make it vulnerable to drop toward the monthly horizontal support zone around $2.43-44.
Natural Gas Price: Four-hour chart
Trend: Further upside expected
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