Natural Gas Remains Under Pressure
Natural gas is losing ground as mild weather forecasts continue to put pressure on prices. At this point, there are no material positive catalysts for natural gas markets, although natural gas prices managed to move away from session lows as some traders were ready to buy the dip.
In case natural gas manages to settle back above the $2.60 level, it will head towards the nearest resistance, which is located in the $2.70 – $2.73 range. A successful test of this level will open the way to the test of the next resistance at $2.85 – $2.88.
On the support side, the nearest support level for natural gas is located in the $2.50 – $2.53 range. A move below the $2.50 level will push natural gas towards the $2.30 level. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.
WTI Oil Pulls Back Amid Profit-Taking
WTI oil pulled back as traders focused on Saudi Arabia’s efforts to prevent the restart of the military operation against Iran.
Officials from Saudi Arabia, Turkey, and Pakistan met with Iranian officials in an attempt to defuse tensions. I’d note that Houthis, who are backed by Iran, have continued to attack Saudi Arabia over the weekend.
Iran reiterated that it had no plans to make atomic weapons but noted that it would continue its peaceful nuclear program. Israel and U.S. believe that the peaceful nuclear program is an attempt to hide the plan for building an atomic bomb. Iran is not ready to give up its nuclear ambitions, so the key catalyst, which triggered the start of the military operation against the country, remains intact.
Not surprisingly, traders decided to take some profits off the table but were not ready for a strong pullback. U.S. – Iran talks have stalled, and it looks that escalation is seen as the key option by both U.S. and Iran.
In case WTI oil pulls back below the $100.50 level, it will head towards the support at $96.50 – $97.00. A move below the $96.50 level will open the way to the test of the 50 MA at $93.31.
On the upside, a move above the $104.00 level will push WTI oil towards the resistance level, which is located in the $106.00 – $106.50 range.
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 Retreats From Session Highs
Brent oil has also pulled back amid profit-taking. That said, Brent oil stays close to multi-month highs as traders prepare for the restart of the military operation against Iran.
In case Brent oil stays above the resistance level at $114.50 – $115.00, it will head towards the nearest resistance level, which is located in the $119.50 – $120.00 range. A move above the level will indicate that the market is in a state of panic.
If you’d like to know more about how commodity markets work, please visit our educational area.