Spot natural gas prices (CFDS ON NATURAL GAS) declined during the recent trading at the intraday levels, to record daily losses until the moment of writing this report, by -2.68%. It settle at the price of $4.650 per million British thermal units, after rising sharply during yesterday’s trading by 5.80%.
On the eastern European crisis, Russian President Vladimir Putin said on Monday he would recognize the independence of two separate Russian-led regions in eastern Ukraine and ordered troops to be sent to the breakaway region, steps that could lead to additional sanctions against Moscow and raised fears of an invasion soon.
As a result, oil and natural gas prices rose by about 8%.
The White House then issued an executive order restricting investment and trade in those areas, while additional measures or possible sanctions are expected to be announced on Tuesday. The Associated Press, citing a senior administration official who briefed reporters on the condition of anonymity, said these sanctions would be separate from what the administration had prepared in the event of a Russian invasion.
Russia is a major supplier of natural gas to Western Europe, and the intensification of conflict in Eastern Europe could affect prices. Energy analysts said Germany's dependence on Russian gas left Europe with no options to punish Moscow if it invaded Ukraine.
Technically, the main bullish trend dominates the movement of natural gas in the medium term and along a slope line, as shown in the attached chart for a (daily) period, with the continuation of positive pressure for its trading above its simple moving average for the previous 50 days, in addition to the influx of positive signals on the relative strength indicators, after it reached there earlier in the over-saturated areas.
Therefore, our positive expectations surrounding the commodity are that it will continue during its upcoming trading, as long as the support level 4.214 remains intact. W expect natural gas to rise to target the important and nearby resistance level 4.954, in preparation for attacking it.
