Natural Gas and Oil Forecast Analyzing Key Resistance Levels

Thursday, 22 August 2024, 22:47

Natural Gas and Oil Forecast highlights the potential for bullish momentum as WTI and Brent test key resistance levels. Oil prices are stabilizing, while Natural Gas shows signs of bearish bias. The outlook is contingent on breaking critical resistance levels.
FX Empire
Natural Gas and Oil Forecast Analyzing Key Resistance Levels

Market Overview

Oil prices remained relatively steady on Friday, though they are set to close the week lower. However, the previous dip followed a downward revision in U.S. employment data, raising concerns about demand. Additionally, renewed ceasefire talks have eased worries about supply disruptions. Analysts suggest that the oil market could find support as global inventories decline, and OPEC may delay planned output increases to stabilize prices.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.18. A double bottom pattern provides support around the $2.03 level, reinforced by an upward trend line on the 4-hour chart. However, both the 50-day and 200-day Exponential Moving Averages, hovering at $2.15, indicate a prevailing bearish bias. The key level to watch is $2.10; a move below this could trigger further downward pressure, pushing prices towards $1.98 and possibly as low as $1.90. On the upside, a break above $2.10 could shift momentum to a more bullish outlook.

WTI Oil Price Forecast

WTI crude oil is currently navigating a downward channel, with a significant resistance level at $73.36. This resistance is reinforced by the 50-day Exponential Moving Average (EMA) at the same level, limiting upward momentum. If WTI manages to break above $73.36, it could signal a continuation of the uptrend, potentially driving prices towards the next resistance levels at $74.37 and $75.73. Conversely, failure to break above $73.36 and the 50 EMA could see WTI crude retracing towards $71.61, with further support at $70.16.

Brent Oil Price Forecast

Brent oil is currently trading within a downward channel, with a key resistance level at $77.50. This level is also reinforced by the 50-day Exponential Moving Average (EMA), making it a significant hurdle for further upward movement. If Brent manages to break above $77.50, it could signal a shift in momentum, potentially driving prices towards the next resistance levels at $78.19 and $79.33. However, if Brent fails to break above $77.50, it could remain under pressure, with immediate support found at $75.82, and further support levels at $75.00 and $74.06.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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