We expect natural gas to rise during its upcoming trading, but on condition that it first breach the resistance level 4.954.
Spot natural gas prices (CFDS ON NATURAL GAS) declined during the recent trading at the intraday levels, to record new daily losses until the moment of writing this report, by 2.27%. It settled at the price of $4.772 per million British thermal units, after declining during yesterday’s trading by – 2.48%.
Energy prices witnessed a partial recovery in early trading this week after US Secretary of State Anthony Blinken said on Sunday that the United States and its allies are considering a ban on Russian imports. US House Speaker Nancy Pelosi also said in a letter to her colleagues that Congress is considering legislation to ban imports of Russian oil, but those gains have been reduced and turned into losses in natural gas, especially after German Chancellor Olaf Schulz appeared to resist the most drastic options.
Germany on Monday rejected a plan for a more coordinated embargo with Western allies, saying it would continue to buy natural gas, oil and coal from Russia, as it had become too dependent on energy imports.
European natural prices rose to record levels at the beginning of this week and international crude oil prices followed suit. Europe’s benchmark gas futures touched $115 in early trading – more than three times the pre-war level – while Brent crude prices have jumped past $120 a barrel, up more than 50% since the start of the year. Escalating sanctions against Russia – including a possible US embargo on Russian oil imports – have raised widespread supply concerns, and the specter of an energy crisis looms large in the markets.
On Monday, the Russian military launched missile and missile strikes on several Ukrainian cities, the Associated Press reports. The targets of the attacks included civilian neighbourhoods, hampering residents’ efforts to flee the war-torn country.
Detailed Weather Services said Monday that the forecast across the United States was warmer over the weekend, with milder adjustments for next week to offset cooler changes in forecasts for the current week.
Technically, the recent natural gas decline came as a result of the stability of the important resistance level 4.954, to reap the profits of its recent rises, and to try to gain positive momentum that might help it breach that resistance, and at the same time it is trying to drain some of its clear buying saturation with relative strength indicators, especially with the beginning of the crossover appearance negative out.
In light of the dominance of the main bullish trend over the medium term along a slope line, with the positive pressure continuing for its trading above its simple moving average for the previous 50 days.
Therefore, we expect natural gas to rise during its upcoming trading, but on condition that it first breach the resistance level 4.954, and then target the resistance level 5.710.
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