Bullish sentiments in natural gas are growing amid suspicion over the strength of the bears as the seasonal demand could surge after a sudden drop in Russian gas supply and Freeport export outage that could persist for the next three months.
On the other hand, Europe's plan to get through a winter of tight Russian gas supply with significant imports of liquefied natural gas is at risk, with U.S. supply curtailed by the Freeport plant outage, rising demand in Asia, and soaring prices.
Selling pressure is still intact below $6.777 and could result in a selling spree on every upward rally during the first two trading sessions of this week. But the trend could turn in favor of the bulls from Wednesday if they find sufficient support from hot weather conditions in the United States.
Technically in a daily chart, if natural gas finds a sustainable move above $6.468 in Monday's trading session, bulls could take the front seat. On the lower side, the immediate support is at $6.174 could be an initial indicator of the prevalence of bullish sentiments if prices do not break this on Monday.
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.