Natural Gas and Oil Analysis: Market Dynamics Post-Fed’s Rate Decisions

Key Insights

• Oil prices rise on weaker dollar and increased IEA oil demand forecast.
• IEA projects 1.1 million bpd increase in global oil consumption.
• Federal Reserve’s end to rate hikes boosts oil’s affordability.
• Natural Gas shows potential for rebound from oversold conditions.
• USOIL and UKOIL exhibit bullish trends near key pivot points.

Quick Fundamental Outlook

Natural Gas Price Forecast

In today’s trading session, Natural Gas (NG) is witnessing a subtle downtick, with its price declining by 0.04% to $2.32. Positioned just above its pivot point at $2.25, NG faces resistance levels at $2.52, $2.69, and $2.94, which could define its short-term trajectory.

Support is observed lower at $2.06, $1.85, and $1.65, marking key levels where buyers might emerge. The RSI, deeply entrenched in the oversold territory at 23, hints at potential for a rebound. The MACD’s marginal positive divergence also suggests a nascent bullish momentum.

Currently trading well below its 50 EMA at $2.90, NG is showing signs of a potential double bottom pattern at the support level of $2.25, indicating a possible upswing. The overall trend for NG appears bullish above the $2.25 mark, suggesting that the commodity may soon test higher resistance levels.

WTI Oil Price Forecast

In today’s market, US Oil (USOIL) has seen a notable ascent, climbing 1.3% to $70.78. This move places the commodity near a pivotal point at $71.87, with an eye on resistance levels at $74.48, $76.87, and $79.68. Support levels lie at $68.07, $66.21, and $63.42, marking potential fallbacks in case of a downturn.

The RSI at 55 suggests a mildly bullish sentiment, while the MACD, currently at -0.11 against a signal of -2.60, indicates potential for an upward trend. The 50 EMA at $71.16 may cap upside movements near the $71.85 mark, but a bullish crossover above this level could stimulate further buying interest.

The overall trend appears bearish below $71.85, with the possibility of testing higher resistances if the asset breaks above this threshold.

Brent Oil Price Forecast