Natural Gas Attempts To Rebound Despite Warm Weather Forecasts
Natural gas gains some ground as some traders are ready to buy the dip despite warm weather forecasts. It remains to be seen whether natural gas will be able to gain upside momentum as warm weather limits heating demand.
Currently, natural gas is trying to settle above the $2.90 level. In case this attempt is successful, natural gas will move towards the nearest resistance level, which is located in the $3.00 – $3.03 range.
On the support side, a successful test of the support at $2.80 – $2.83 will open the way to the test of the next support at $2.85 – $2.88.
WTI Oil Is Mostly Flat In Volatile Trading
WTI oil is swinging between gains and losses as traders focus on news from the Middle East.
According to recent reports, mediators from Qatar went to Tehran to discuss the current situation with Iranian officials.
President Trump has recently said that U.S. striked some Iranian targets overnight. Iran said that it delivered a strong response. It looks that strikes were limited, and neither side believes they would lead to a new war.
President Trump has also said that he would cut off $4 billion in U.S. aid to Israel by the end of the year. He noted that Israel’s Prime Minister Benjamin Netanyahu knew about this decision. Trump added that Israel was a successful country and did not need aid from the U.S.
Oil traders also prepare for U.S. midterm elections. Earlier, many traders worried that U.S. would strike Iran after elections. Oil prices pulled back from recent highs as traders reacted to recent efforts to solve the conflict through diplomacy. However, the risks of a restart of the military operation against Iran stay high.
In case WTI oil settles back above the support at $95.50 – $96.00, it will head towards the nearest resistance level, which is located in the $100.50 – $101.00 range. A move above the $101.00 level will push WTI oil towards the $104.00 level.
On the support side, WTI oil needs to settle below the $95.50 level to have a chance to gain downside momentum in the near term. In this case, WTI oil will head towards the next support level at $91.50 – $92.00.
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 Rebounds From Session Lows
Brent oil was moving back in forth as traders monitored headlines and tried to guess whether U.S. and Iran were ready for serious negotiations. The market will remain extremely sensitive to news from the Middle East in the upcoming trading sessions.
In case Brent oil manages to settle below the support at $104.00 – $104.50, it will head towards the next support at $99.50 – $100.00. 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 $106.00 level will open the way to the test of the resistance level at $109.00 – $109.50.
If you’d like to know more about how commodity markets work, please visit our educational area.