Natural Gas Price Analysis: XNG/USD bounces off key support line towards $2.70

• Natural Gas rebounds from 12-week-old rising support line to consolidate the biggest daily loss in a week.
• Steady RSI adds strength to XNG/USD recovery targeting fortnight-long resistance line, 21-DMA.
• Horizontal area from early July and top of June act as additional filters toward the north.
• Energy bears can refresh monthly low on breaking $2.64.

Natural Gas Price (XNG/USD) recovers from the lowest level in a fortnight while rising 0.91% intraday to $2.67 amid early Wednesday.

In doing so, the XNG/USD reverses from the key support line stretched from early June to consolidate the biggest daily losses marked in a week, printed the previous day.

Apart from the stated support line, the steady RSI (14) also underpins the Natural Gas rebound toward a convergence of the three-week-old descending resistance line and 61.8% Fibonacci retracement of March-April fall, near $2.71.

However, the 21-DMA and a horizontal area comprising multiple tops marked since early July, respectively near $2.73 and $2.78-79, quickly followed by the $2.80 round figure, could challenge the XNG/USD bulls afterward.

It’s worth noting that June’s peak of $2.93 and the $3.00 threshold will act as the last defenses of the Natural Gas sellers.

On the flip side, a daily closing below the previously stated support line, close to $2.64 at the latest, could trigger the XNG/USD fall toward the monthly low of $2.50.

Following that, the 38.2% Fibonacci retracement of around $2.48 may check the Natural Gas bears.

Natural Gas Price: Daily chart

Trend: Limited upside expected