Crude oil and Natural Gas Highlights

Natural gas (NG) stays strong over $1.99, bolstered by major E Exponential MAs near the pivot point.
Should WTI Crude oil falls under the pivot level of $83.20 mark, it faces a steep plunge.
Assuming  rises over its pivot point price of $87.59 level, it may find barrier at $89.27/barrel.

The market Snapshot

The price of crude fell in early Asian trading on Monday afternoon. Reversing the previous day’s advances, as talks for peace involving Hamas and Israel in Egypt calmed Middle East concerns. While inflation in the US statistics lowered expectations for immediate rate reduction. Possible peace measures influenced this modest opening to markets by reducing international disputes.

Rising US rate of inflation of 2.7 percent in March of this year above the Fed’s objective. That point to consistently elevated interest rates. Boosting the US currency and putting a squeeze on prices of commodities, especially NG and crude oil.

WTI Crude

US WTI falls under $83.00 on interest worries coupled with supply interruption fears, limiting declines later rebounding.

With the context of fading worries over another flare-up of the Israel-Iran disputes. There are also worries that increased rates of interest in the United States may reduce gasoline consumption in the world’s biggest consumer country. Which may put a certain strain upon the oil. The concerns were reinforced by softer-than-estimated American the first quarter growth in GDP data revealed this past week.

In addition, the U.S PCE inflation gauge issued on Friday reinforced views suggesting the U.S Fed may postpone interest rate cuts. At that point, the hardline view continues to underpin the basic optimistic mood of the U.S dollar. Which could keep impact on the price of crude oil prices.

US WTI Crude Analysis

WTI is presently valued at $83.32, down 0.61 percent. The oil is trading close to its pivotal point of $83.20 mark. Making it essential for predicting the following trend shift. Should it remain over this point, The WTI may face barrier around $84.86, then move to greater levels of $86.14 then $87.60 mark.

In contrast, if prices fall beneath the pivot point, it may attempt to find support around $81.92 mark. Following additional drops to $80.75 then $79.36 level.  Technical gauges such the 50 D- EMA around $83.28 & the 200 D- EMA of $82.64 mark give further setting. Showing a little bias in favor yet warning that an excursion under $83.20 mark may launch a harsher falling wave.

Brent Oil Technical Analysis

The price of $88.69 level has decreased by 0.31% to $87.49/barrel, representing a 0.68 percent drop. The Brent is just shy of its pivot value of $87.59 mark, which might determine the subsequent shift in the market’s structure. If Brent rises over this point, it will encounter higher barrier around $89.27 mark. In addition to hurdles at $90.87 with a possible typo which ought to be greater, at $82.15 level.

Assuming it persists beneath the pivotal point, its first support is $86.16 mark, then successive levels of $84.63 & $83.16. The 50 D- EMA & 200 D-EMA, around $87.99 & $87.19, each, imply that market mood is fairly uncertain.  Therefore, a watchful monitor is required while values linger around those crucial MAs.

Natural Gas (NG Technical Analysis

The price of NG has been trading at $2.00 / MMBtu, representing a 2.61 percent increase for the period in question. The NG has crossed the $1.99 pivot mark, implying that the positive trend may continue. The price resistance areas have been set around $2.06, $2.13, then $2.22 mark.

If prices fall, asset could hit safety at $1.91, then additional possible retreats to $1.84 & $1.75 mark. The stochastic scenario is additionally backed with the 50 D- EMA at the level of pivot and the 200 D- EMA near $1.95 mark. Each of which reinforce the bullish momentum near these prices.

Daily Technical Indicators & Signals

WTI Crude

Natural Gas