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Natural Gas - bias still bullish but momentum seems to be stalling

Chart & Data from IG

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Bias still bullish but momentum seems to be stalling

Taking a look at Natural Gas as the commodity continues to see its price creep higher. Currently, NG is trading at around $1.945 a tonne. The support can be found along the ascending trendline, which so far suggests that a new bottom may have been formed on the 18th of February. However, it is still too early to make this conclusion. The first support level reads $1.847 followed by $1.795 (along the trendline). A break below the trendline would not necessarily mean that the price of gas will continue lower, though it could mean that a decline towards $1.721 for a re-test would be underway. Nonetheless, as the bias in the shorter term points to the upside, the resistance reads $1.988 followed by $2.041, and then trendline resistance of $2.058. $2.058 is the key resistance for the shorter term as a break above it would allow the bulls to target the next key area of $2.200-$2.300. Overall, the technical indicators sway more towards the bullish bias, but the MACD volume has faded a touch and the RSI is flat, reading 54.

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