Oil prices exhibit stabilization following OPEC+'s production cuts, with Brent crude and WTI futures experiencing modest increases amid market skepticism.
Key Insights
On December 1st, Natural Gas (NG) is experiencing a slight downturn, trading at $2.77, down by 0.79%. The current price hovers below the pivot point of $2.87, with immediate resistance levels at $3.00, $3.09, and $3.22. Support is more immediate at $2.75, with further levels at $2.62 and $2.52.
The Relative Strength Index (RSI) stands at 39, leaning towards a bearish sentiment. The 50-Day Exponential Moving Average (EMA) is at $2.84, slightly above the current price, suggesting a bearish trend.
However, a triple bottom pattern observed in the chart indicates support for NG at the $2.75 level, hinting at potential resilience. Given this technical setup, the overall trend for Natural Gas appears to be cautiously bullish above the $2.75 mark, and in the short term, it may challenge resistance levels, particularly around $3.00, in a market that remains sensitive to evolving energy dynamics.
The Relative Strength Index (RSI) is at 45, indicating a neutral to slightly bearish market sentiment. The 50-Day Exponential Moving Average (EMA) stands at $81.41, suggesting a possible selling trend. An upward channel pattern is observed, supporting a buying trend over the $80.10 mark.
This contradictory signal between the 50 EMA and the chart pattern creates a complex trading scenario. Therefore, the overall trend for UK Oil appears cautiously bullish above the $80 threshold.
In the short term, the market might test the resistance levels, particularly around $83.96, reflecting the dynamic interplay of various market forces.
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Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.