Natural Gas Price Analysis: Inverse H&S keeps XNG/USD bulls hopeful on Fed Day, focus on $2.78

• Natural Gas Price remains on the front foot after refreshing three-week high.
• Bullish chart pattern, sustained trading above the key moving averages keep XNG/USD buyers hopeful.
• Nearly overbought RSI, five-week-old horizontal resistance zone also restrict Natural Gas price.

Natural Gas Price (XNG/USD) remains firmer around $2.75, up 0.30% intraday during early Wednesday after rising to the fresh high in three weeks the previous day, as markets await the Federal Open Market Committee (FOMC) monetary policy meeting announcements.

It’s worth noting that the XNG/USD portrays an inverse head and shoulders (H&S) bullish chart formation on the four-hour play. Adding strength to the upside bias for the Natural Gas Price is the upbeat RSI (14) not overbought, as well as the commodity’s ability to stay beyond the key Simple Moving Averages (SMAs).

However, a five-week-old horizontal resistance area adds strength to the $2.78-79 zone and offers hardships to the XNG/USD bulls.

Also, the RSI (14) is above 50 and hence a sharp run-up in the Natural Gas Price may fuel the oscillator to the overbought territory, which in turn may prod the XNG/USD bulls.

That said, tops marked in June and March, respectively near $2.93 and $3.07, may act as additional upside filters to watch past $2.79, apart from the theoretical target of the inverse H&S confirmation, around $3.04.

Alternatively, a convergence of the 200-SMA and the 100-SMA, around $2.64 by the press time, appears a tough nut to crack for the XNG/USD bears to retake control.

Following that, the odds of witnessing the Natural Gas Price’s downturn towards the monthly low of nearly $2.52 can’t be ruled out.

Natural Gas Price: Four-hour chart

Trend: Further upside expected