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Natural Gas and Oil Analysis: NG at $2.86, Oil Prices Unmoved by Supply Dynamics
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Despite a significant drop in oil stocks and a looming supply shortfall, oil prices remain surprisingly stagnant, reflecting market uncertainty.
In this article:
Key Insights
- Oil prices stagnate despite API’s report of a 5.2 million barrel drop and EIA’s 2024 supply shortfall forecast.
- Natural Gas experiences a 2.71% decline, trading close to the pivotal $2.87 point.
- US and UK Oil witness slight gains amid anticipation of CPI data’s influence on the market.
Quick Fundamental Outlook
On January 10, Natural Gas (NG) experienced a significant drop of 2.71%, trading at $2.86. This price situates NG just beneath its pivot point (green line) of $2.87, a critical juncture for its immediate market trajectory.
Looking forward, NG faces resistance at $2.99, with subsequent hurdles at $3.12 and $3.22. These points are key for NG to rebound from its current level. Conversely, support for NG is found at $2.71, with additional levels at $2.59 and $2.48, potentially preventing further drops.
The Relative Strength Index (RSI) is at 55, indicating a market that is neither distinctly bullish nor bearish. Notably, NG’s 50-Day Exponential Moving Average (EMA) aligns with its immediate support level at $2.71. The chart analysis shows a Doji candlestick pattern near the $2.87 pivot point, reflecting market indecision.
WTI Oil Price Forecast
On January 10, US Oil (WTI) is trading at $72.53, up by 0.53%. This movement places US Oil slightly below its pivot point of $72.77, a critical juncture for potential price direction. Looking ahead, the commodity faces resistance at $73.97, followed by higher barriers at $74.99 and $76.10.
Conversely, support levels are identified at $71.62, $70.47, and $69.27, which could provide stability in the event of a price pullback.
The Relative Strength Index (RSI) is at a neutral 51, indicating neither overbought nor oversold conditions, suggesting a balanced market sentiment. Additionally, US Oil is trading just above its 50-Day Exponential Moving Average (EMA) of $72.40, hinting at a slight bullish bias in the short term.
Formation of a symmetrical triangle is suggesting a consolidation phase within a range of $70.45 to $74. This pattern indicates indecision among traders, with a breakout in either direction likely to set the tone for future price action.
Brent Oil Price Forecast
On January 10, UK Oil (Brent) edged up slightly, trading at $77.85, marking a 0.50% increase. Currently, it’s positioned just below the pivot point (green line) of $78.05. Brent faces resistance at $79.22, $80.39, and $81.44, which are key to gauging its potential for further gains. Support levels are established at $76.48, $75.19, and $73.97, offering buffers against declines.
The Relative Strength Index (RSI) is moderately bullish at 52. Additionally, Brent is trading above its 50-Day Exponential Moving Average (EMA) at $77.71, suggesting a slight bullish bias.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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