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| Natural Gas Price Analysis: XNG/USD Struggles to Break Out of Downtrend |
Natural gas prices have been struggling to gain momentum in recent weeks, as XNG/USD remains bearish despite a brief corrective bounce off the $2.30 support level. While the energy benchmark managed to snap a two-day losing streak, it still faces significant resistance at the 21-bar EMA and a three-week-old descending resistance line.
The lack of support from MACD and RSI oscillators suggests that natural gas prices are likely to continue their downward grind in the short term. However, a clear downside break of the $2.30-28 support area would restrict the commodity's short-term downside.
If XNG/USD falls below $2.28, the possibility of a slump towards the monthly low of $2.13 cannot be ruled out. And if the commodity remains bearish past $2.13, the $2.00 level will be crucial to watch, as a break could make it vulnerable to testing the mid-2020 lows surrounding $1.53.
On the upside, the convergence of the 21-bar EMA and a downward-sloping trend line from March 05 highlight $2.37 as the short-term key resistance level for natural gas prices. Additionally, the $2.50 and $2.68 levels, acting as important resistance, will be crucial for XNG/USD to break out of its current downtrend.
In conclusion, natural gas prices remain bearish, but short-term grinding can't be ruled out. Traders and investors will be watching closely for any signs of a trend reversal in the coming weeks.
