Tuesday, January 25, 2011

Natural Gas Technical Analysis | 25 January 2011

Natural Gas Technical Analysis | 25 January 2011

Natural gas has fallen sharply from 4.879. This might suggest that a temporary top has formed at 4.879 and intraday bias has turned neutral for the moment.

Further movement down from the 4.322 support level might suggest that the bounce back from 3.255 is possibly finished after it hit 4.805.

In such case, deeper decline would be seen down towards the 3.951 support level and maybe down further. Still, before a break of 4.322, bullish sentiment must remain in favor. Increases above 4.879 could target 5.194 resistance level next.

Keep in mind these support lines this week: moving down, a break of 3.951 might put focus back on the 3.255 support level.

January 25, 2010 - by David Frank, Financial Analyst, Ava Fx