Natural Gas Tests New Highs As Rebound Continues
Natural gas continues to move higher as weather forecasts improve. It looks that short-covering serves as an additional positive catalyst as the strong rebound in recent trading sessions caught short-sellers by surprise.
Natural gas settled above the resistance level at $3.00 – $3.05 and is trying to settle above the $3.10 level. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.20 – $3.25 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, natural gas needs to settle below the $3.00 level to have a chance to gain downside momentum in the near term. In this case, natural gas will move towards the 50 MA at $2.91. If natural gas declines below the 50 MA, it will head towards the support level at $2.75 – $3.00.
WTI Oil Rebounds As Traders Focus On Potential Escalation In Hormuz
WTI oil rebounded from session lows amid reports indicating that Iran ramped up attacks on tankers going through the Strait of Hormuz.
According to recent reports, Iran is trying to stop tankers as traffic has increased significantly. Iran is losing its key asset in negotiations, so it’s not surprising to see that the country is trying to reduce traffic in the Strait of Hormuz. Risks of additional escalation are rising, which is bullish for oil prices.
Traders also prepare for the IEA meeting on Wednesday. The organization will discuss plans for the release of 100 million barrels of diesel and crude inventories, which was announced last week.
WTI oil made an attempt to settle below the support level at $88.50 – $89.00 but lost momentum and rebounded above the $89.00 level. If WTI oil manages to settle back above $89.00, it will head towards the nearest resistance level, which is located in the $92.50 – $93.00 range. A move above the $93.00 level will push WTI oil towards the $96.00 level.
On the support side, a successful test of the support at $88.50 – $89.00 will open the way to the test of the next support level at $84.50 – $85.00.
Natural Gas Price Forecast
Every new Natural Gas analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Natural Gas forecastsBrent Oil Climbed Back Above $100
Brent oil has also rebounded from session lows as traders focused on supply risks. The situation in the Middle East remains volatile, so oil markets will need major catalysts to develop a downside trend.
The nearest resistance level for Brent oil is located in the $101.50 – $102.00 range. If Brent oil climbs above the $102.00 level, it will head towards the next resistance level at $109.00 – $109.50. This resistance level has been tested many times and proved its strength. A move above the $109.50 level will indicate that the oil market is in a state of panic and prepares for major escalation in the Middle East.
On the support side, WTI oil needs to settle below the $97.00 level to gain downside momentum in the near term. In this case, WTI oil will head towards the 50 MA at $95.19.
If you’d like to know more about how commodity markets work, please visit our educational area.
