Natural Gas Tests New Lows
Natural gas is losing ground as traders stay focused on yesterday’s EIA report, which showed that working gas in storage increased by +80 Bcf from the previous week. Higher-than-expected build continues to put pressure on the natural gas market.
The nearest support level for natural gas is located in the $2.80 – $2.83 range. If natural gas manages to settle below the $2.80 level, it will head towards the next support level, which is located in the $2.65 – $2.68 range. RSI remains in the moderate territory, so there is enough room to gain momentum in the near term.
On the upside, a move above the $2.90 level will push natural gas towards the resistance level at $3.00 – $3.03.
WTI Oil Moves Higher Amid Rising Risks Of War In The Middle East
WTI oil gains ground as traders worry that U.S. would resume strikes against Iran after midterm elections. According to a Wall Street Journal report, President Trump was briefed about military options against Iran.
Recent reports indicated that a delegation from Qatar, which attempts to serve as mediator between U.S. and Iran, arrived in Tehran. Qatar wants to prevent the potential attack on Iran, which could lead to a wide war in the region.
Today, President Trump said that Iran war would end very soon “one way or the other”. The market believes that Trump will choose the military option as Iran is not ready for any concessions. Importantly, Iran does not want to discuss its nuclear program, which was the key reason why U.S. and Israel decided to strike the country. Trump said many times that Iran would not have a nuclear weapon.
Currently, WTI oil is trying to settle above the $104.00 level. In case this attempt is successful, WTI oil will move towards the nearest resistance level, which is located in the $106.00 – $106.15 range. A successful test of this level will open the way to the test of the next resistance at $110.50 – $111.00.
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 Is Stuck Below The $115.00 Level
Brent oil settled near the $113.00 level as traders switched from December contract to January contract. December contract is trading above the $117.50 level, but its trading volume is low.
It remains to be seen whether traders will be ready for big moves ahead of U.S. midterm elections. Geopolitics are the only driver for the oil market right now, and traders have completely ignored the major sell-off in U.S. equity markets.
The technical picture remains unchanged as Brent oil is stuck below the resistance level at $114.50 – $115.00. If Brent oil climbs above the $155.00 level, it will head towards the next resistance level, which is located in the $119.50 – $120.00 range. A move above the $120.00 level will provide Brent oil with an opportunity to gain additional upside momentum.
If you’d like to know more about how commodity markets work, please visit our educational area.