Natural Gas Price Analysis: XNG/USD clings to mild gains near $2.73, multi-month-old resistance line eyed

• Natural Gas Price remains on the front foot after refreshing two-week high.
• Clear upside break of three-week-old descending trend line, 61.8% Fibonacci retracement favors XNG/USD bulls.
• Bulls remain hopeful beyond a convergence of 100-SMA, 38.2% Fibonacci retracement.

Natural Gas Price (XNG/USD) edges higher past $2.72, staying firmer at the two-week high during the early hours of Friday’s Asian session. In doing so, the energy instrument clings to mild gains after rising the most in a month the previous day.

That said, a daily closing beyond the 61.8% Fibonacci retracement of the XNG/USD’s March-April downside, near $2.71, joins the upbeat RSI (14) line to keep the buyers hopeful.

Adding strength to the bullish bias is the commodity’s sustained U-turn from 100-DMA and a break of the previous resistance line stretched from June 26.

With this, the Natural Gas Price is expected to stretch the latest run-up towards the horizontal hurdle around $2.81 comprising the tops marked in May and late June.

Following that, an upward-sloping resistance line from March, close to $2.88, will be in the spotlight.

It’s worth noting that the RSI (14) may reach the overbought territory should the Natural Gas Price rise past $2.88, which in turn challenge the quote’s further upside then.

In a case where the XNG/USD remains firmer past $2.88, the tops marked in June and March, respectively near $2.93 and $3.08, may challenge the buyers before directing them to the yearly top.

On the contrary, the 61.8% Fibonacci retracement level of $2.71 acts as immediate support for the Natural Gas Price.

Following that, the previous resistance line and 50% Fibonacci retracement can challenge the XNG/USD bears around $2.60.

Above all, the Natural Gas buyers remain hopeful unless witnessing a daily closing beneath the 100-DMA and 38.2% Fibonacci retracement, close to $2.47 at the latest.

Natural Gas Price: Daily chart

Trend: Further upside expected