Natural Gas Price Analysis: XNG/USD retreats from $2.62 resistance confluence

• Natural Gas Price eases from weekly high after two-day winning streak.
• Convergence of 100-EMA, three-week-old descending trend line highlights $2.62 as the key resistance.
• Previous support from early June acts as extra filter toward the north.
• Sellers may aim for 61.8% Fibonacci retracement during further downside.

Natural Gas Price (XNG/USD) lacks upside momentum around $2.60 during Thursday’s Asian session, after failing to cross the $2.62 key resistance the previous day. In doing so, the XNG/USD also justifies the RSI (14) line’s retreat, as well as the receding bullish bias of the MACD signals.

With this, the energy instrument is likely to extend the latest pullback toward the 50% Fibonacci retracement of its June 01-26 upside, near $2.55.

However, the golden Fibonacci ratio, comprising the 61.8% mark around $2.46, followed by multiple tops marked since late May around $2.43, could challenge the XNG/USD bears afterward.

In a case where the Natural Gas Price remains weak past $2.43, the odds of witnessing a slump toward the previous monthly low of around $2.17 and then to the yearly low marked in April of around $2.11 can’t be ruled out.

Meanwhile, a successful break of $2.62 isn’t an open invitation to the Natural Gas buyers as the support-turned-resistance line stretched from early June, close to $2.65 at the latest, acts as an extra filter toward the north.

Should the quote XNG/USD remains firmer past $2.65, the monthly high of around $2.88 and June’s peak surrounding $2.93 will be in the spotlight.

Overall, the Natural Gas Price is likely to witness a pullback but the bearish trend is far from the sight.

Natural Gas Price: Four-hour chart

Trend: Further downside expected