Natural Gas Technical Analysis: Price Closes High Monday

Last weeks trading on natural gas prices ended lower until last Friday, as the spot natural gas prices fell until the end of Friday to 6.040, after a corrective rise at the end of last Thursday. But the decline did not continue on Friday and the price of natural gas rose again at the end of trading on Monday and the beginning of Tuesday, reaching 6.663. The price of natural gas could not cover the price gap that occurred at the beginning of the week current until now, as there is demand for gas during the weekend period.

In addition, natural gas futures rebounded, as production fell and demand due to near-term weather remained elevated. However, the spot month fell by midday as traders digested expectations for a strong storage injection, and struggled to regain momentum.

In addition, Russia's announcement of cutting natural gas supplies to Germany, which may push prices to a further rise in natural gas, in addition to the start of maintenance work on the Nord Stream pipeline, as fears spread in the eurozone towards the end of the summer and the beginning of the summer season. Winter is when European countries desperately need gas supplies.

Through technical analysis, the price is expected to settle below the resistance level 5.665, amid the dominance of a bearish corrective wave in the short term, with the continuation of negative pressure for its trades.