NYMEX Natural Gas Futures: Extension of Rebound

Uptrend

Chinese economy remains on strong footing as indicators suggested that economic activity in October maintained recent pace of growth. Official manufacturing PMI slipped to 51.4 (51.3 expected) from 51.5 in September, still above 50.0 for an eighth straight month, and Caixin China Manufacturing PMI rose to 53.6 (52.8 expected), the highest level since January 2011.

From a technical point of view, NYMEX Natural Gas Futures (Dec) is gathering more upside momentum as shown on the daily chart. It has accelerated to the upside after breaking above August's high and has surpassed the 50% Fibonacci retracement resistance of the decline started from late 2018. The level at $2.64 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $3.59 and $4.18 respectively.

Market chart of Nymex Natural Gas. Analysed in 2020

Source: GAIN Capital, TradingView

Related tags: Commodities China PMI

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