Natural gas daily chart technical analysis
Natural gas future on last trading session closed at 288 with gains. On daily chart, natural gas future trend and momentum both are down. Prices are trading below all short-term averages and heading towards previous bottoms with lower tops and bottom cycle.
For next week, below 300 level traders must keep short view. On upside 295 and 318 are strong resistance levels while on downside 280 and 255 are strong supports.
For next week below 300 expect downside rally to continue for targets 280 and then 255.
Natural gas weekly chart technical analysis
Natural gas future this week is showing cut of 24% on future rollover and sharp profit booking in last week of expiry. On weekly chart, that is sharp correction and prices are heading towards major averages to test them.
On chart, 270 is natural gas 6 month average while 245 is its 12-month average and both are strong support zones on chart. On upside, 300 and 334 are strong resistances on weekly closing basis. Weekly chart price trend is up but momentum is clearly in hands of bears as fresh shorts as well as sharp profit taking had seen in past week.
Investors must watch 245-260 zones for re-entry for upside targets of 300 to 334.