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Natural Gas pares intraday gains with bearish chart pattern.
200-HMA adds strength to $2.31 key support amid steady RSI line.
Double tops around $2.44 guard immediate XNG/USD upside ahead of flag’s top.
Energy sellers remain hopeful unless witnessing clear break of $2.61.
Natural Gas Price (XNG/USD) grinds lower to $2.35 amid early Monday as it fails to defend the week-start gap towards the north by reversing from $2.37. In doing so, the energy instrument remains with a bear flag chart formation suggesting further downside of the quote. It’s worth observing that the steady RSI (14) line supports further grinding of the XNG/USD towards the south.
However, the 200-Hour Moving Average (HMA) adds strength to the $2.31 support confluence, joined by the stated flag’s bottom line.
Should the quote breaks the $2.31 support, it needs validation from the $2.30 psychological magnet to progress on the way to the theoretical target of the bear flag confirmation, at $1.66.
That said, the monthly low of $2.17, the yearly bottom marked in April around $2.14 and the $2.00 threshold are likely extra checks for the XNG/USD bears.
On the contrary, the Natural Gas buyers may aim for the double tops marked around $2.44 while paring the latest losses within the bearish chart formation.
Though, a clear upside break of $2.44 can challenge the bear flag, by poking the $2.46 hurdle.
Should the XNG/USD manages to remain firmer past $2.46, the odds of witnessing a run-up toward a late May high of near $2.61 can’t be ruled out.
Trend: Bearish
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