Natural Gas Moves Lower As Traders Take Profits After Rally
Natural gas pulls back as traders take some profits off the table after the strong rally, which was triggered by cooler weather forecasts.
The nearest support level for natural gas is located in the $3.20 – $3.23 range. If natural gas manages to settle below the $3.20 level, it will head towards the next support, which is located in the $3.00 – $3.03 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the upside, a move above the $3.30 level will push natural gas towards the resistance level at $3.40 – $3.43. A move above $3.43 will open the way to the test of the $3.65 level.
WTI Oil Tests Resistance At $87.50 – $88.00
WTI oil gained some ground as traders remained focused on U.S. – Iran talks and monitored negotiations between Russia and Ukraine.
There were no breakthroughs in Russia-Ukraine talks, in line with analyst expectations. That said, it looks that both sides of the conflict are ready for a new round of talks, which is slightly bearish for oil markets.
According to recent reports, U.S. wants to put additional economic pressure on Iran by closing its border crossings. However, Iran’s neighbors are not happy to join the effort amid fears of economic damage. It remains to be seen whether U.S. attempts to boost blockade of Iran would be successful.
An Iranian official has recently said that the country would not allow nuclear material to leave the country. This comment provided material support to oil prices. Iran’s nuclear program was the key reason for the military operation against the country. Any potential deal will include consessions on the nuclear program.
WTI oil has recently made an attempt to settle above the resistance level at $87.50 – $88.00 but lost momentum and pulled back. In case WTI oil climbs above $88.00, it will head towards the psychologically important $90.00 level. A move above $90.00 will open the way to the test of the resistance level at $91.50 – $92.00.
On the support side, WTI oil needs to settle below the $85.00 level to gain downside momentum in the near term. In this case, WTI oil will head towards the support, which is located in the $83.00 – $83.50 range.
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See all Natural Gas forecastsBrent Oil Gains Ground As Traders Focus On Iran’s Comments
Brent oil has also moved away from session highs as traders waited for news from the Middle East and reacted to Iran’s comments on the country’s nuclear program.
At this point, traders are not ready to bet on additional escalation. I’d note that U.S. – Iran talks remain in a stalemate, which means escalation risks are rising. It looks that U.S. wants to avoid military action after Republicans lost midterm elections. However, rising economic pressure may force Iran to make the first move.
The nearest support level for Brent oil is located in the $91.00 – $91.50 range. If Brent oil declines below the $91.00 level, it will head towards the next support at $86.00 – $86.50.
On the upside, Brent oil needs to settle above the resistance at $95.50 – $96.00 to gain upside momentum in the near term. In this case, Brent oil will move towards the $100.00 level.
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