Natural Gas Price Analysis: 50-SMA prods XNG/USD bears near $2.80, downside appears more impulsive

• Natural Gas pares the biggest daily loss in three weeks with mild gains.
• 50-SMA tests XNG/USD bears amid steady RSI (14) line.
• Downside break of short-term support line, bearish MACD signals keep sellers hopeful.

Natural Gas Price (XNG/USD) recovers to $2.81 after falling the most in three weeks the previous day, mildly bid amid early Tuesday. In doing so, the XNG/USD bounces off the 50-SMA support amid a steady RSI (14) line.

However, a clear downside break of the previous support line stretched from August 24 joins the bearish MACD signals to keep the Natural Gas sellers hopeful despite the latest rebound.

That said, the 23.6% Fibonacci retracement of the XNG/USD’s early August run-up adds strength to the support-turned-resistance line of around $2.93.

Following that, the late August swing high of around $3.00 and the previous monthly peak surrounding $3.06 will act as the final defenses of the Natural Gas sellers.

Meanwhile, a downside break of the 50-SMA support of surrounding $2.80 can quickly drag the Natural Gas price to the 200-SMA level of $2.75.

Should the quote manage to conquer the 61.8% Fibonacci retracement level of near $2.72 and the RSI (14) remain steady near the 50.0 level past $2.75, the XNG/USD may aim for the late August trough close to $2.57.

Overall, the Natural Gas Price remains on the bear’s radar despite the latest corrective bounce.

That said, the return of the full markets, after Monday’s US Labor Day Holiday, might allow the XNG/USD to pare some of its latest losses and can convince buyers in a case where the US Dollar extends the previous day’s pullback.

Natural Gas Price: Four-hour chart

Trend: Further downside expected