Natural Gas Price Analysis: XAG/USD rebound appears elusive below $2.53-54 resistance confluence

• Natural Gas price picks up bids to pare the biggest daily loss in a week.
• Clear downside break of short-term key support favors XNG/USD sellers.
• One-week-old horizontal area, support-turned-resistance line highlights $2.53-54 key hurdle.
• Immediate DMAs challenge Natural Gas sellers ahead of crucial $2.13-11 support zone.

Natural Gas (XNG/USD) price prints mild gains around $2.43 amid early Wednesday’s sluggish session, after snapping a three-day uptrend the previous day. In doing so, the energy instrument also pares the biggest daily loss in a week amid bullish MACD signals and a steady RSI (14) line. With this, the XNG/USD is likely to witness further recovery.

However, a convergence of the previous support line from April 14 and a one-week-old horizontal area comprising the previous weekly tops, around $2.53-54, appears a tough nut to crack for the Natural Gas buyers to crack.

Following that, a run-up towards the mid-March swing high of around $2.75 and then to the $3.00 round figure can’t be ruled out.

In a case where the XNG/USD remains firmer past $3.00, the previous monthly high close to $3.07 will be in the spotlight.

On the flip side, the 10-DMA and the 21-DMA put a floor under the Natural Gas price around $2.38 and $2.30 respectively.

Should the XNG/USD bears keep the reins past $2.30, a horizontal area comprising multiple lows marked since February, near $2.13-11, can act as the last defense of the Natural Gas buyers.

Natural Gas Price: Daily chart

Trend: Further recovery expected