Natural Gas, WTI Oil, Brent Oil – Oil Rebounds As Traders Shrug Off Weak Chinese Imports Data

Key Insights

• Natural gas is gaining ground amid a lack of additional negative catalysts.
• WTI oil rebounded from session lows as traders ignored weak Chinese imports data. 
• Brent oil has also moved away from session lows. 

Natural Gas

Natural gas settled above the $2.20 level as the rebound continued. There are no additional negative catalysts, and bulls bet that the bottom has been formed.

The nearest resistance level for natural gas is located at $2.35. A move above $2.35 will push natural gas towards the $2.60 level.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil rebounded from session lows despite weak economic data from China, which indicated that imports declined by 7.9% year-over-year in April.

A move above the $74.00 level will push WTI oil towards $75.70. In case WTI oil manages to settle above $75.70, it will head towards the next resistance at $76.90.

R1:$74.00 – R2:$75.70 – R3:$76.90

S1:$72.70 – S2:$71.70 – S3:$70.30

Brent Oil

Brent oil has also managed to rebound as traders bet that OPEC+ production cuts will balance the market in May.

If Brent oil climbs above $77.50, it will head towards the resistance at $78.50. A successful test of this level will push Brent oil towards the psychologically important $80.00 level.

R1:$77.50 – R2:$78.50 – R3:$80.00

S1:$76.25 – S2:$75.50 – S3:$74.60

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