Natural Gas and Oil Forecast: WTI Breaks Triangle – Is $108.25 the Next Stop?

Market Overview

WTI crude continues to trade in a wild $102-$105 range on March 31 following a day of wild swings that saw it bounce back and forth between $100.80 and $106.80, making it clear that it’s been a real rollercoaster ride for the oil markets. The volatility is due to its best month performance since May 2020 with a 50%-plus surge.

Brent is still hovering around the $107-$112 mark but really thats still pretty steady considering whats going on

The recent escalation in tensions in the Middle East has really taken a toll on the oil prices and with disruptions in the Strait of Hormuz – which handles a massive 20-27% of global oil traffic – its no surprise that investors are spooked. The reports of tanker attacks and shipping being restricted have thrown all sorts of obstacles in the way of the latest US crude inventory build, which also added a healthy 6.9 million barrels to the tank.

Analysts keep saying that if supply disruptions drag on, then oil prices are going to go up a lot, and with that come even more market volatility in the energy sector

Natural Gas: At the Crossroads – A Fibonacci Retracement Decision Time

Natural Gas (NG) is currently at a critical moment : as its testing a big descending trendline & hovering near the 0.236 Fibonacci level at $2.87 . The price has produced a narrow descending channel & the market’s really struggling to get back up to the $2.97 resistance zone.

Looking at candlesticks we see a series of doji candles with small bodies – it’s a pretty clear sign that the market is split. And the RSI is heading down towards 40 – it looks like momentum is slowly fading.

If the price drops below that $2.79 support however, it’s likely going to be a deeper correction all the way down to $2.70 – but if it breaks above the trendline we could see a squeeze.

Trade Idea: Short if it drops below $2.79 aiming for $2.70 – or long if somehow it manages to clear $2.90

WTI Crude Oil : A Symmetrical Triangle Finally Breaks Its Hold

USOIL has finally burst through the top boundary of its symmetrical triangle on the 2hr chart. And it’s supported by a bullish crossover of the two moving averages – that’s really starting to shift momentum in the favour of the bulls

The current price is sort of stuck around $104.62, bouncing off the $101.64 level which used to be resistance. The price was really anchored there & thats given a pretty clear foundation to go up from

The RSI is still in bullish territory but not so overbought that we’re ruled out an upward push up to that major psychological resistance at $108.25 yet. We’re seeing long lower wicks on those bullish candlesticks too – that’s a sign that the buyers are strong on any minor pullbacks

Trade Idea: Long as soon as it gets back above $105.00 aiming for $108.25 with a stop loss below $101.50.

Brent Crude: Is UKOIL Going to Sit Tight on its Trendline Support?

UKOIL is stuck in an upwards channel & currently resting on a diagonal trendline which has been a rock solid support for the whole month so far. The price is hanging around $108.01 – which is just below the $109.35 resistance

The tech indicators show the red moving average is acting as a solid support – while the RSI is sitting pretty at 60 – that’s a really good sign for the bulls – no signs of exhaustion yet

A clean break above $112 would confirm that the big uptrend is still intact – but a close below the blue moving average at $98.91 would probably invalidate the current bullish structure

Trade Idea: Look to go long on a successful bounce from $107.50 aiming for $114