Oil, Natural Gas, US Dollar Technical Analysis: Key Levels, Market Trends, and Price Outlook

WTI crude oil (CL) is trading around $67.40 in the early Asian session on Thursday. The price continues to rebound from the support as oil inventories remain tighter than expected. However, concerns over a US economic slowdown and the impact of tariffs on global trade could limit further gains.

Crude oil inventories increased last week but at a slower pace than expected. The US Energy Information Administration (EIA) reported a stockpile rise of 1.448 million barrels for the week ending March 7, as shown in the chart below. This increase was lower than the previous week’s 3.614 million barrels and the market expectation of 2.1 million barrels. Analysts suggest that stronger demand for gasoline and diesel contributed to this smaller-than-expected build.

Despite this, economic risks could pressure oil prices. Effective Wednesday, the US government confirmed a 25% tariff on all imported steel and aluminium. These tariffs could raise business costs, increase inflation, and weaken consumer confidence. As a result, fears of slower economic growth might weigh on WTI prices in the coming weeks.

WTI Crude Oil (CL) Technical Analysis

Oil Daily Chart – Bearish Trend

The daily chart for WTI oil shows that the price rebounds from the support region and touches the red-dotted trendline at $68, where the breakout occurred. However, the orange zone represents long-term support for WTI crude oil, and a failure to break below this level may trigger a strong rebound. Despite this, the oil market remains in a bearish trend, and this rebound is primarily due to oversold conditions following the recent price decline.

Oil 4-Hour Chart – Falling Wedge Pattern

The 4-hour chart for WTI crude oil shows that the price rebounded from support, which formed at the base of the falling wedge pattern, with consolidation around $67. The strong resistance lies near $70.70. The downtrend will continue as long as the price remains below $70.70.

Natural Gas (NG) Technical Analysis

Natural Gas Daily Chart – Cup and Handle Pattern

The daily natural gas (NG) chart shows that the price has hit resistance and corrected lower. However, developing a cup and handle pattern on a broader scale indicates the continuation of the upward trend. The trend will likely stay upward if the price remains above $3. A break above $5 will open the door for further upside in natural gas prices.

Natural Gas 4-Hour Chart – Ascending Channel

The 4-hour chart for natural gas shows the formation of an ascending channel, with the price consolidating within it. The price has hit the resistance zone around $4.50 and $5 and is correcting lower. This correction is a healthy sign for natural gas and may lead to another strong rally. The strong support levels for natural gas are $3.40 and $3.

US Dollar Technical Analysis

US Dollar Daily – Bearish Pressure

The daily chart for the US Dollar Index shows strong bearish pressure at the 103.50 support level. The index has formed its first key reversal after seven days of continuous decline. However, this reversal does not change the outlook and appears weak, suggesting that the 103.50 support may be broken. The trend will likely drift lower if the index remains below the 105.20 and 107 levels.

US Dollar 4-Hour Chart – Bearish Pressure.

The 4-hour chart for the US Dollar Index shows that the index has been trading within a descending channel and consolidating around the 103.50 support zone. This consolidation produces a bullish divergence on the 4-hour chart; however, the price action remains negative. A break below 103.50 may push the US Dollar lower.