Natural Gas and Oil Forecast: Will Bullish Momentum Hold as WTI, Brent Test Key Resistance?

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, which is also 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. Bearish below $2.10, with potential downside to $1.98 or lower. A break above $2.10 could indicate a bullish reversal.

WTI Oil Price Forecast

WTI crude oil (USOIL) 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. Bearish below $73.36; a break above this level may ignite further bullish momentum, while failure to break could lead to a decline towards $71.60.

Brent Oil Price Forecast

Brent oil (UKOIL) 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.

Bearish below $77.50; a break above this level could lead to a more bullish outlook, while failure to break may result in continued downward pressure.