Natural Gas and Oil Analysis: Turbulent Tides in Energy as NG Takes a 3% Hit

Key Insights

• Natural Gas displays a bearish trend, potentially influenced by today’s market news and the recent price drop.
• WTI Oil’s bullish sentiment is evident with its price above the 50 EMA and positive MACD figures, highlighting the significance of futures in the current market scenario.
• Brent Oil’s surge hints at its resilience in the face of external pressures, with its upward momentum supported by the recent bullish crossover, making it pivotal in today’s crude oil news.

Quick Fundamental Outlook

Brent oil remained stable over $90 a barrel on Monday, following its peak on Friday, amid concerns about the intensifying Israel-Hamas conflict. Meanwhile, the U.S. recently sanctioned tankers transporting Russian oil priced over the G7’s $60 cap, aiming to restrict Moscow’s energy sale revenues.

Natural Gas Prices Forecast

Natural Gas (NG)‘s price on October 16 stands at $3.38, marking a decline of nearly 0.60%. Key price levels show a pivot point at $3.32. Immediate resistance is identified at $3.45, followed by subsequent levels at $3.53 and $3.66. On the downside, support is found at $3.24, with deeper supports at $3.11 and $2.97.

The RSI registers a value of 40, hinting at a bearish sentiment since it’s below the 50 mark. MACD values display -0.0216 with its signal at -0.0101, potentially indicating a downward momentum. The 50 EMA is currently priced at $3.36, suggesting a short-term bearish trend as the price is slightly above this mark.

Chart patterns reveal that NG has crossed below the 23.6% Fibo retracement level of $3.44, aiming for targets at $3.33 or $3.25, represented by the 38.2% and 50% Fibo retracement, respectively. Conclusively, the trend appears bearish below $3.44, and any upward shift would require surpassing this threshold.

WTI Oil Prices Forecast

On October 16, WTI Crude Oil (WTI) witnessed an upswing to $88.20, marking a 0.60% rise. Analyzing the 4-hour chart, the pivotal price stands at $85.93. The asset faces immediate resistance at $89.56, with following resistances at $91.37 and $94.99. In contrast, supports lie at $84.12, $80.49, and $78.64.

The RSI, currently at 63, suggests a bullish sentiment, as it’s above the 50 mark. The MACD is charted at 0.4500 with its signal line at 0.7000, hinting at potential upward momentum. Meanwhile, the price is above its 50 EMA (valued at $85.92), indicating a short-term bullish trend.

The daily chart displays a bullish engulfing candle, emphasizing a buying trend above $87. Moreover, WTI Oil sliced through the 61.8% Fibo level and is now on course for the 78.6% mark. Conclusively, a bullish trend is in play above $87.25, with the asset likely to challenge upper resistances soon.

Brent Oil Prices Forecast

Brent Oil, also referred to as UK Oil, surged to $91.20 on October 16, marking a 0.40% increment. As per the 4-hour chart, the key pivot point is situated at $89.04. The oil commodity is meeting resistance levels at $92.79, $94.76, and a higher mark of $98.55. Conversely, support levels are delineated at $87.12, $83.33, and $81.41.

The RSI stands at 67, highlighting a bullish sentiment given it’s significantly above the 50 mark. The MACD has a value of 0.4500, trailing its signal line at 1.0200, which could hint at a prospective upward momentum. Additionally, the oil price stands above its 50 EMA (placed at $88.28), signifying a short-term bullish inclination.

A notable downward channel breakout and a 50 EMA bullish crossover on the 4-hourly frame bolster the buying trend, with a potential aim to reach $93. In essence, the trend appears bullish above $90. In the short term, the asset might challenge its upper resistance levels.

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