Natural Gas, WTI Oil, Brent Oil Forecasts – Middle East Tensions Weigh on Energy Commodities

Key Insights

• The Israel-Hamas conflict has reduced concerns over potential oil supply interruptions, causing oil prices to fall.
• Natural Gas exhibits bullish behaviour above $3.25, with the 50 EMA supporting this sentiment above $3.22.
• WTI Oil and Brent Oil indicate bearish trends below their respective price points of $86.65 and $88.45, but potential rebounds could test higher resistances.

Natural Gas

On October 10, the technical outlook for Natural Gas, based on a 4-hour chart timeframe, presents a compelling narrative. The commodity’s current pivot point is pegged at $3.26. There’s an immediate resistance level at $3.62, followed by subsequent resistances at $3.82 and $4.18. On the flip side, support levels are evident at $3.07, with further cushions at $2.71 and $2.51.

The Relative Strength Index (RSI) for Natural Gas registers at 67.17, suggesting a bullish sentiment since it’s above 50 but is approaching the overbought territory. The MACD value of -0.0097, which is below its signal line at 0.1001, indicates potential downward momentum.

Interestingly, the price of Natural Gas is hovering just above the 50-day Exponential Moving Average (EMA) of $3.22, strengthening the case for a short-term bullish trend. The observed pattern shows that the 50 EMA supports Natural Gas remaining bullish above $3.22.

In conclusion, Natural Gas exhibits a bullish trend when priced above $3.25, and traders can expect it to test higher resistance levels in the near term.

WTI Oil

On October 10, based on a 4-hour chart timeframe, the WTI Crude Oil (WTI) technical perspective looks intriguing. The commodity has been trading slightly bearish at $85.45, marking a decline of approximately 0.30%. In terms of resistance levels, WTI Oil is looking up to $89.22, with further hurdles spotted at $95.77 and $99.54. Conversely, support is anticipated at $78.9, with additional cushions at $75.25 and $68.71.

The Relative Strength Index (RSI) stands at 49, marginally in the bearish territory. Meanwhile, the MACD, valued at 0.36, has crossed above its signal counterpart at -0.16, suggesting potential bullish momentum in the short run. However, the commodity’s price is below the 50-day Exponential Moving Average (EMA) of $86.62, which hints at a short-term bearish trend.

Conclusively, the trend for WTI Oil is bearish when priced below $86.65. In the short term, it might attempt to recover and test higher resistance levels.

Brent Oil

On October 10, the 4-hour chart reflects Brent (UKOIL)‘s bearish sentiment, priced at $87.76, representing a decline of 0.52% on Tuesday. Looking forward, resistance levels for Brent Oil are positioned at $90.66, followed by $96.96 and then the crucial $100.47 mark.

On the flip side, the support levels to monitor lie at $80.85, $77.22, and further down at $71.05. From the technical indicators standpoint, the Relative Strength Index (RSI) stands at 51.09, which, being slightly above 50, hints at a borderline bullish sentiment. Nevertheless, the asset’s current position is below the 50-day Exponential Moving Average (EMA) of $88.43, suggesting a bearish short-term stance.

In conclusion, Brent Oil’s trend remains bearish below $88.45. In the short term, a rebound is possible, which might lead the asset to test upper resistance levels.

For a look at all of today’s economic events, check out our economic calendar.