Natural Gas Price Analysis: XNG/USD appears poised to retest multi-month lows close to $2.00

Natural Gas (XNG/USD) maintains losses near $2.20 as bears test the yearly low established in February. In doing so, the energy quotation remains lethargic following two consecutive days of decline.

The XNG/USD bears applaud the sustained trading below a two-week-old descending resistance line, around $2.27 at the time of writing, amidst bearish MACD signals and the absence of an oversold RSI. (14).

Consequently, the price of natural gas appears poised to fall below the yearly low of $2.13, which accentuates the $2.00 psychological magnet.

However, the early July 2020 high around $1.97 and the 61.8% Fibonacci Expansion (FE) of its moves during early January-March 2023, around $1.80, could challenge the Natural Gas skeptics later, in conjunction with a likely oversold RSI line.

In contrast, a break above the stated immediate resistance line, near $2.27, is not an open invitation to Natural Gas purchasers, as another downward-sloping trend line from the beginning of the year, near $2.40 at the latest, functions as a further check on the XNG/USD bulls.

If the price manages to remain firmer than $2.40, there is no reason to rule out a rally toward the mid-March high of $2.75.