Natural Gas Pulls Back From The $6.40 Level After EIA Report

Key Insights

• Natural gas prices failed to settle above the important resistance level at $6.40.
• WTI oil is under strong pressure as traders prepare for a recession in developed economies. 
• Stronger dollar and higher Treasury yields caused a sell-off in precious metals markets. 

Natural Gas Faced Strong Resistance At $6.40

Natural gas prices faced strong resistance at $6.40 and pulled back after the release of the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 64 Bcf from the previous week, compared to analyst consensus of 63 Bcf.

Natural gas is currently trying to settle back below the support level at $6.20. In case this attempt is successful, it will move towards the next support at $5.90. A successful test of the support at $5.90 will push natural gas towards the support level at $5.75.

On the upside, the nearest resistance level for natural gas is located at $6.40. If natural gas climbs above this level, it will head towards the resistance at $6.75. A successful test of the resistance at $6.75 will open the way to the test of the $6.90 level.

WTI Oil Settled Below $83

WTI oil declined below the $83 level as stronger dollar, higher Treasury yields, and recession worries hurt market sentiment.

The technical factors are also in play as WTI oil managed to gain additional downside momentum after the successful test of the support at $84.20.

Currently, WTI oil is trying to settle below the support at $82.60. In case this attempt is successful, WTI oil will move towards the next support, which is located at the $82 level.

Silver Falls As Dollar Rebounds

Silver fell below the $21 level as traders rushed out of precious metals due to stronger dollar and higher Treasury yields.

Platinum and palladium, which are sensitive to industrial demand, have also found themselves under significant pressure. Platinum moved below the $1000 level, while palladium managed to settle below $2000.

Gold faced resistance at $1775 and declined below the support level at $1765.

Copper Moved Back Below The $3.70 Level

Not surprisingly, rising recession fears had a negative impact on copper markets. Copper settled below the $3.75 level and gained additional downside momentum.

Currently, copper prices are trying to settle below $3.70. In case this attempt is successful, copper will find itself back in the $3.60 – $3.70 trading range.

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