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Natural Gas Price Analysis: XNG/USD rebounds from immediate support line to near $2.55 - FXStreet

FXStreet · last updated May 23, 2023 – 12:30 AM

Natural Gas Price Analysis: XNG/USD rebounds from immediate support line to near $2.55

- Natural Gas price prints the first daily gains in three as it bounces off a 12-day-old ascending support line.
- Bullish MACD signals, steady RSI line joins sustained break of 50-day EMA to favor the XNG/USD bulls.
- Key Fibonacci retracement levels, 100-day EMA challenge further upside.

Natural Gas Price (XNG/USD) remains mildly bid around $2.56 during early Tuesday as the energy instrument bounces off the short-term ascending support line.

In addition to the XNG/USD rebound from a two-week-old rising support line, the bullish MACD signals and the mostly steady RSI (14) line also keep the commodity buyers hopeful.

Adding strength to the bullish bias could be the quote’s successful trading above the 50-day Exponential Moving Average (EMA).

Hence, the Natural Gas Price is likely to extend the latest recovery, which in turn highlights the 50.0% and 61.8% Fibonacci retracements of its March-April fall, respectively near $2.60 and $2.71, as the nearby important resistances.

It’s worth noting, however, that the XNG/USD bulls remain cautious unless the quote provides a daily closing beyond March’s peak of around $3.08.

That said, the $3.00 round figure and the 100-day EMA level of around $3.04 may act as extra checks for the Natural Gas price upside.

Meanwhile, a downside break of the aforementioned support line, close to $2.54 by the press time, isn’t welcome for the Natural Gas bears as the 50-day EMA level surrounding $2.50 may act as an extra filter towards the south.

Should the quote drops below $2.50, the odds of witnessing the Natural Gas Price’s gradual southward trajectory toward the monthly low of around $2.14 can’t be ruled out.

Natural Gas Price: Daily chart

Trend: Further upside expected

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Natural Gas Price Analysis: XNG/USD rebounds from immediate support line to near $2.55 - FXStreet

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