Friday at a glance: without a clear direction, NYMEX Natural Gas closed at $5 per MMBtu while ranging between $4.9 and $5.38.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the Relative Strength Index indicates NYMEX Natural Gas is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. Asset volatility analysis shows that US Natural Gas's upper Bollinger Band® is at $7.63 and the lower is $5.03. Analysis of Natural Gas's recent price action suggests US Natural Gas is approaching key support, around 21 cents away from $4.78. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
The current technical outlook indicates Natural Gas will continue to ebb sideways within tight ranges for the immediate future.
The commodity has been trending lower for about a month. Approximately 2 months ago, NYMEX Natural Gas reached a significant high of $9.68 but has struggled to hold onto its gains and declined 48.77% since then.