Traders are keeping an eye on natural gas for a potential comeback due to higher demand in Asian markets and China’s LNG purchases since loosening Covid restrictions.

After the extreme sell-off and downside pressure since Christmas, natural gas is now trading at around $2.248. Applying the Fibonacci retracement to the chart, perhaps the beaten down commodity has found a base at $20.64. A break below this support base could see the price decline to as low as $1.600. Although, traders are keeping an eye on the market for a potential comeback due to higher demand in Asian markets and China’s LNG purchases since loosening Covid restrictions. The resistance is sitting at $2.298 (23.6% fib), it is a tough resistance point to overcome but yesterday’s impulsive candlestick may have sparked some positivity. A break above the 23.6% fib would see resistance levels at $2.443 (38.2% fib) followed by $2.560 (50% fib). April could be a key month for gas to determine its mid-term outlook. Looking at the technical indicators, MACD has turned positive and RSI is neutral as it reads 45.