Natural Gas futures are going through a corrective move after failing to sustain above $2.58 in the Tokyo session. The gas price is expected to remain on tenterhooks as investors are awaiting the release of the weekly gas inventory data.
According to the estimates, the United States Energy Information Administration (EIA) is expected to report a build-up of inventory by 119 billion cubic feet (bcf) for the week ending May 19.
Meanwhile, the US Dollar Index (DXY) has refreshed its two-month high at 104.06 as US debt-ceiling issues have escalated anxiety among investors.
Natural Gas prices resumed their upside journey after a bullish Hidden Divergence on a four-hour scale. The asset formed a higher low while the Relative Strength Index (RSI) (14) formed a lower high, which indicated that the momentum oscillator got oversold in an uptrend and produced a bargain buy opportunity for the market participants.
Upward-sloping 50-and 200-period Exponential Moving Averages (EMAs) at $2.51 and $2.41 respectively, indicates more upside ahead.
A break into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) (14) will strengthen Natural Gas futures further.
Should the asset break above the immediate resistance of $2.60, NG bulls will march firmly towards May 22 high at $2.69 followed by March 02 high at $2.88.
On the flip side, a break below May 17 low at $2.43 will expose the asset to April 20 low at $2.28. A break below the latter will further drag the asset toward May 05 low at $2.09.
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