Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Tests New Highs

Natural Gas Tests Resistance At $2.75 – $2.80

Natural gas pulled back as traders took some profits off the table after the strong rebound from multi-month lows.

From the technical point of view, natural gas continued its attempts to settle above the resistance level at $2.75 – $2.80. In case natural gas manages to settle above the $2.80 level, it will gain additional upside momentum and move towards the next resistance at $3.00 – $3.05. 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 $2.70 level to have a chance to gain downside momentum in the near term. In this case, natural gas will head towards recent lows near the $2.62 level. A move below $2.62 will push natural gas towards the support at $2.50 – $2.55.

WTI Oil Moves Higher As Traders React To Recent Developments In The Middle East

WTI oil gains ground as traders focus on the situation in the Middle East. Defense Minister of Pakistan has recently said that U.S. and Iran were close to some kind of a deal.

The market did not show strong reaction to his words as traders focused on recent comments from Iranian officials and President Trump. Both sides demanded compensations for damages.

Iran’s demands also include the release of frozen assets and the lifting of the U.S. naval blockade of the country’s ports.

At this point, the market is not ready to believe in a potential deal and is focused on hawkish demands from both Iran and U.S.

WTI oil moved above the resistance at $81.50 – $82.00 and made an attempt to settle above the $84.00 level. In case WTI oil manages to settle above $84.00, it will head towards the next resistance level, which is located in the $86.00 – $86.50 range.

On the support side, a move below the $81.50 level will push WTI oil towards the 50 MA at $79.48.  In case WTI oil declines below the 50 MA, it will move towards the support at $77.50 – $78.00.

Brent Oil Tested The $90.00 Level

Brent oil tested new highs as traders bet that U.S. and Iran would not reach a deal in the near term. The Strait of Hormuz remains de-facto closed, although some vessels manage to get through the world’s key waterway. Iran has listed its demands, which look unrealistic. The probability of another round of military operation against Iran is rising, which is bullish for oil markets.

In case Brent oil stays above the resistance at $86.50 – $87.00, it will head towards recent highs near the $90.00 level. A move above the $90.00 level will push Brent oil towards the resistance at $91.00 – $91.50.

On the support side, Brent oil needs to settle back below the $86.50 level to gain donwside momentum in the near term. In this case, Brent oil will head towards the 50 MA at $83.64. A move below the 50 MA will push Brent oil towards the support at $82.00 – $82.50.

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