The market remains underpinned by geopolitical tensions, particularly in the Middle East and the ongoing Russia-Ukraine conflict, which continue to pose supply risks.
Impact on Natural Gas and Oil Forecast: The persistent concerns about China’s economic slowdown, alongside geopolitical tensions, suggest a cautious outlook for both natural gas and oil, with potential downside pressure on prices.
WTI Crude Oil (USOIL) is currently trading at $75.33, showing a slight decline of 0.02%. The chart analysis reveals a bearish outlook, particularly after an upward trendline was breached. The 50-day Exponential Moving Average (EMA) at $77.00 has crossed below the 200-day EMA at $77.96, forming a bearish crossover, which often signals a continuation of the downward trend.
Brent Oil (UKOIL) is currently trading at $79.49, slightly down by 0.01%. The chart indicates a bearish outlook, particularly after the price broke below an upward trendline.
The 50-day Exponential Moving Average (EMA) at $79.97 has crossed below the 200-day EMA at $81.18, forming a bearish crossover, which typically signals further downside.
Immediate support lies at $78.64, with additional support at $77.62 and $75.94. On the upside, resistance is at the pivot point of $79.99, followed by $81.41, $82.31, and $83.49.
The market remains bearish below $79.99, but a break above this level could shift momentum, suggesting a potential reversal.
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.