NYMEX Natural Gas. Dips lower has held over 4.20 so far but the risk remains for a deeper correction.
- Natural Gas charted a new high at the end of 2013 of 4.53, this was accompanied by a divergence of the RSI but the dip lower has held over the 23.6% retracement at 4.20 and currently the market remains bid and well placed to retest the 4.53 recent high and the 4.68 23.6% retracement of the move down from 2008. Currently the market looks to have seen a significant break higher and we suspect will eventually head over 5.00.
- Very near term we note the near term downtrend at 4.41 and it is possible that 4.20 will be re-tested, the Elliott wave count on the daily chart is suggesting the market should remain well supported on pullbacks to the 4.13/01 region. If seen we look for the market to stabilise here and re-try the topside..
NYMEX Natural Gas Daily Continuation Chart