Natural Gas Price Analysis: Falling wedge lures XNG/USD bulls but $2.76 guards immediate recovery
- Natural Gas Price picks up bids to extend late Friday’s rebound from two-week low within bullish chart pattern.
- Convergence of 50-EMA, falling wedge’s top line challenges XNG/USD buyers.
- Sluggish oscialltors suggest continuation of upward grind; sellers need validation from 11-week-old support line.
Natural Gas Price (XNG/USD) clings to mild gains around $2.72–73 during early Monday as it stretches the late Friday’s corrective bounce amid a sluggish Asian session. In doing so, the energy instrument also justifies the market’s cautious optimism, as well as a pullback in the US Dollar Index (DXY).
Also read: US Dollar Index: DXY retreats towards 103.00 on Friday’s Doji, Fed remarks at Jackson Hole eyed
It’s worth noting that the recently sluggish MACD signals and the RSI (14) line’s grinding near the 50.0 level suggests the XNG/USD’s further advances.
However, a convergence of the 50-Exponential Moving Average (EMA) joins a top-line of the two-week-old falling wedge bullish chart formation to highlight the $2.76 as a tough nut to crack for the Natural Gas buyers.
June’s top and the monthly high, respectively near $2.93 and $3.07, can test the XNG/USD buyers before directing them to toward the theoretical target of around $3.11.
On the contrary, the stated wedge’s bottom line, close to $2.63 by the press time, restricts immediate downside of the Natural Gas Price.
Following that, an ascending support line from early June, around $2.59 as we write, will act as the last defense of the XNG/USD bulls.
Overall, the Natural Gas Price is expected to improve but the upside appears limited.
Natural Gas Price: Four-hour chart
Trend: Limited upside expected