Natural Gas Tests Support At $7.50 After Bearish EIA Report
- Natural gas markets are moving lower as EIA report exceeds expectations.
- WTI oil has found some support near recent lows.
- Copper continues to trade below the $3.50 level.
Natural Gas Is Under Pressure
Natural gas is trying to settle below the $7.50 level after an unsuccessful attempt to stabilize near $8.00.
Todays’s EIA report indicated that working gas in storage increased by 103 Bcf from the previous week, compared to analyst consensus of 93 Bcf. The weather forecast is not favorable for high natural gas demand, and the market lacks upside catalysts.
In case natural gas manages to settle below the support at $7.50, it will head towards the next support level, which is located at $7.20. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge. A move below the support at $7.20 will push natural gas towards the next support level at $6.90.
On the upside, the nearest resistance level for natural gas is located at $7.65. If natural gas climbs back above this level, it will head towards the resistance at $7.80. A successful test of this level will push natural gas towards the $8.00 level.
WTI Oil Attempts To Rebound
WTI oil is trading near the $83 level as the market remains worried about demand. The recent increase in geopolitical tensions failed to provide enough support to oil markets.
The hawkish Fed served as the key negative catalyst for oil as traders fear that high interest rates will hurt oil demand. From a technical point of view, oil continues to move lower in a downside channel.
Gold Is Stuck Near $1675
Precious metals are mostly flat in volatile trading. Gold has settled near the $1675 level, while silver is trading near $19.50. Palladium has recently moved above $2150, while platinum pulled back towards the $900 level.
Treasury yields keep moving higher, which is bearish for precious metals. At the same time, the U.S. dollar pulled back from recent highs, providing some support to gold and silver.
Copper Failed To Settle Back Above $3.50
Copper has recently made an attempt to get back above the $3.50 level but failed to gain sufficient upside momentum.
Copper markets are mostly flat today, although they have been trending lower in recent trading sessions due to recession worries.
At this point, it looks that copper will need significant downside catalysts to get below the support area in the $3.40 – $3.50 range.
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