Natural Gas Tests New Highs As Rally Continues
Natural gas continues to move higher as traders stay focused on bullish weather forecasts. Short-covering provides additional support to the natural gas market.
Natural gas climbed above the resistance level at $3.20 – $3.23 and is trying to setlte above the 50 MA at $3.27. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.40 – $3.43 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 $3.20 level to have a chance to gain downside momentum in the near term. In this case, natural gas will move towards the nearest support, which is located in the $3.00 – $3.23 range.
WTI Oil Rebounds From Session Lows
WTI oil pulled back from session lows as traders remained focused on news from the Middle East and tried to guess whether U.S. and Iran were moving towards a comprehensive peace deal.
President Trump has recently said that additional strikes on Iran would not be necessary. He noted that Iran’s military was “effectively over” and added that the U.S. was keeping the status quo.
As usual, Iran reiterated its demands, which include lifting the naval blockade and sanctions. It remains to be seen whether Iran is ready for serious concessions on its nuclear program, which was the key reason for the military operation in the Middle East.
Russia and Ukraine had negotiations in Abu-Dhabi, which would continue tomorrow. Analysts expect that there would be no breakthroughs. However, the continuation of negotiations indicates that the sides of the conflict may be trying to find a way out. Meanwhile, both Russia and Ukraine attack energy infrastructure to put pressure on the opponent.
It looks that short-sellers decided to take some money off the table amid no signs of tangible progress in U.S. – Iran talks. Bottom-pickers have also provided some support to the oil markets in today’s trading session.
In case WTI oil settles above the $86.00 level, it will head towards the resistance level at $87.50 – $88.00. A successful test of this level will open the way to the test of the next resistance at $91.50 – $92.00.
On the support side, a move below the $85.00 level will push WTI oil towards the support at $83.00 – $83.50.
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See all Natural Gas forecastsBrent Oil Attempts To Settle Above $91.50
Brent oil has also moved away from session lows as traders waited for additional information on U.S. – Iran talks.
From the technical point of view, Brent oil failed to settle below the support level at $91.00 – $91.50 and is trying to gain upside momentum. In case this attempt is successful, Brent oil will head towards the resistance level at $95.50 – $96.00.
On the support side, a successful test of the support at $91.00 – $91.50 will open the way to the test of the next support level at $86.00 – $86.50.
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