Natural Gas Weekly Technical Outlook

The sharp fall from 3.994 and break of 3.242 support confirmed short term topping on bearish divergence condition in daily MAD. The development also suggests that whole rise from 2.546 is completed at 3.944 too and lengthier consolidation would be seen. Further decline is in favor to 61.8% retracement of 2.546 to 3.994 at 3.099. Strong support should be seen above 2.546 to bring rebound. On the upside, above 3.506 minor resistance will turn bias back to the upside for retesting 3.994. But in that case, we don't expect a break there any time soon and natural gas should stay in consolidative mode for a while.