The upcoming policy news from a key leadership gathering in China is also awaited with interest. This bullish trend in oil prices could have a positive impact on natural gas prices, as both commodities are often correlated in the energy market.
WTI crude oil (USOIL) is currently trading at $81.88, up 0.36% on the day. The 4-hour chart shows the commodity is trading above both its 50-day and 200-day exponential moving averages (EMAs) of $81.77 and $81.74 respectively, suggesting a bullish trend. Immediate resistance lies at $82.43, followed by $82.90 and $83.53.
However, a break below the pivot point of $81.36 could trigger a sharp selloff towards support levels at $80.44, $79.71, and $79.07. Traders should closely monitor price action around the $81.36 level for further direction.
Brent Oil Price Forecast
Brent crude oil (UKOIL) is currently trading at $85.42, a modest 0.33% gain for the day. While the commodity is holding above the pivot point of $85.29 on the 4-hour chart, it is trading below both its 50-day and 200-day exponential moving averages (EMAs) of $84.77 and $84.97, respectively.
This suggests a potential conflict between short-term bullishness and longer-term bearishness.
A break above the immediate resistance level of $86.17 could propel prices higher towards $86.86 and $87.63, but a failure to hold above the pivot point could trigger a sharp decline towards the support levels of $84.79, $84.26, and $83.43.
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.