Natural gas has bounced off the $2.648-$2.693 support area after falling into oversold territory, though the longer-term trend remains negative as price is still below both the 50-EMA ($2.843) and 100-EMA ($2.930). The current rally is being tested at the 2.0 Fibonacci level at $2.693.
The RSI has recovered to around 40, suggesting that the sell-off is losing steam, but it remains bearish. Resistance is positioned at $2.756, followed by $2.816 and $2.897. The next level of support is at $2.693, with $2.648 and $2.590 as further downside levels.
The overall sentiment remains negative as long as price is below $2.756. A break above this level would pave the way for a rally towards $2.816, while a break below $85.68 or $2.693 could lead to a test of $2.648 and possibly $2.590.
WTI Crude Oil Technical Analysis: Bulls Reclaim EMAs but $84.75 Remains the Breakout Barrier