Natural gas faces stiff resistance at $7.222 since this week's opening, thanks to bears above this level. Despite supportive weather for the natural gas bulls, bears have come out of their dens as the dollar surges to a new 20-year high, supported by Friday's jobs report.
Secondly, the number of Chinese living under COVID-19-related restrictions rose to over 114 million, according to Nomura, as a fresh wave of cases led to a combination of lockdown and mass-testing.
On the other hand, China remains the one major economy worldwide without a severe inflation problem. Lebanon, Sri Lanka, Russia, Suriname, and Zambia are already in default, Belarus is on the brink, and at least another dozen are in the danger zone as rising borrowing costs, inflation, and debt all stoke fears of economic collapse.
In the 15 minutes chart, a steep fall could begin at 07:00 a.m. as the bulls struggle to find a breakout above the immediate resistance at $7.222.
In the hourly chart, the natural gas could hit the 200 DMA in today’s trading session as a breakdown below the psychological support at $7 could be an advent of a steep slide. If natural gas can not sustain above the immediate resistance at $7.331, bears could push prices to test $6.331.
Disclaimer: The author of this analysis does not have any position in natural gas. Readers are advised to take any position at their own risk, as Natural Gas is one of the most liquid commodities in the world.