Natural Gas Price Analysis: 21-DMA breakout keeps XNG/USD bulls hopeful near $2.35

• Natural Gas price justifies 21-DMA breakout to print three-day winning streak.
• Bullish MACD signals, sustained trading above 10-DMA also favors XNG/USD bulls.
• One-month-old horizontal resistance comprising 50-DMA appears a tough nut to crack for Natural Gas buyers.

Natural Gas (XNG/USD) clings to mild gains around $2.36 as bulls keep the reins during a three-day uptrend amid early Wednesday. In doing so, the XNG/USD buyers cheer a clear break of the 21-DMA around the highest levels in three weeks.

Not only the upside of the 21-DMA but bullish MACD signals and sustained trading beyond the 10-DMA also keep Natural Gas buyers hopeful.

That said, the late March swing high around $2.40 round figure lures intraday buyers of the XNG/USD. However, a convergence of multiple levels marked since early March and the 50-DMA, around $2.47-48, quickly followed by the $2.50 threshold, could challenge the energy instrument’s further upside.

In a case where the XNG/USD remains firmer past $2.48, the March 14 top surrounding $2.75 will be in focus.

Alternatively, Natural Gas sellers need validation from the 21-DMA support of $2.31 to revisit the 10-DMA support of around $2.25.

It’s worth noting, however, that the lows marked since late February highlight $2.13-12 as the key strong downside support for the XNG/USD bears to conquer if they wish to meet the early July 2020 high of near $1.95.

Overall, the Natural Gas price regains upside momentum but the room towards the north appears limited.

Natural Gas Price: Daily chart

Trend: Further upside expected