Natural Gas Tests The $3.00 Level
Natural gas is moving higher as traders focus on bullish changes in weather forecasts, which indicate that temperatures may get cooler.
The technical picture remains unchanged as natural gas continues its attempts to settle above the resistance level at $3.00 – $3.03. In case natural gas settles above the $3.03 level, it will head towards the next resistance at $3.20 – $3.23. A move above $3.23 will push natural gas towards the 50 MA at $3.27.
On the support side, natural gas needs to settle below the $2.90 level to have a chance to gain downside momentum in the near term. In this case, natural gas will move towards the support level at $2.80 – $2.83. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
WTI Oil Moves Lower As Trump Talks To Qatar’s Leader
WTI oil pulls back as traders focus on reports indicating that U.S. and Iran are moving towards a deal.
According to recent reports, Iran is ready to discuss its nuclear program, which was the key reason for the military operation against the country. Proposals related to Iran’s nuclear program were submitted by Qatar, which serves as mediator.
Qatar said that President Trump and Qatar’s leader Al-Thani had recently discussed ongoing negotiations. Traders view these talks as a sign of potential de-escalation in the Middle East.
That said, bears are not ready for aggressive bets ahead of the weekend. Ongoing negotiations do not guarantee anything. The initial operation against Iran was started when U.S. and Iran were negotiating, but Iran did not accept U.S. proposal.
WTI oil made an attempt to settle above the resistance level at $91.50 – $92.00 but lost momentum and pulled back towards the psychologically important $90.00 level. In case WTI oil manages to settle below $90.00, it will head towards the nearest support, which is located in the $87.50 – $88.00 range. This support level has already been tested several times and proved its strength. A move below $87.50 will provide Brent oil with an opportunity to gain additional downside momentum.
On the upside, a successful test of the resistance at $91.50 – $92.00 will push WTI oil towards the 50 MA at $95.52. If WTI oil climbs above the 50 MA, it will get to the test of the resistance at $96.00 – $96.50.
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See all Natural Gas forecastsBrent Oil Pulled Back Amid Profit-Taking
Brent oil has also moved lower as traders tooks some profits off the table after the strong rebound from multi-week lows.
Currently, Brent oil is trying to settle below the $97.00 level. In case this attempt is successful, Brent oil will head towards the next support, which is located in the $95.50 – $96.00 range.
On the upside, a move above the $100.00 level will open the way to the test of the resistance level at $104.00 – $104.50. If Brent oil climbs above the $104.50 level, it will head towards the $109.00 level.
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