Introduction:

In the world of commodities natural gas, a notable rebound is underway after a bearish start. With a climb back above last week’s lows and a promising intraday turnaround at the 2.55 level, natural gas is now edging closer to Friday’s high of 2.67, potentially setting the stage for an inside day bullish breakout. Additionally, we explore oil prices, which have seen a notable climb of over $1 a barrel, driven by market attention on supply constraints and the outlook for the U.S. economy.

Natural Gas:

Natural gas rebounds after a bearish start.

Natural gas climbed back over last week’s low after an intraday positive turnaround off the 2.55 level and is currently getting close to Friday’s high of 2.67. An inside-day bullish breakout will occur if the advancement surpasses that high. The three-day high at 2.68 will then be tested. Nevertheless, the 2.68 high should be easily broken to the upside given today’s positive turnaround.

Ahead of the handoff, the more active November delivery contract decreased today by 2.1% to close at $2.845/MMBtu, bringing the two contracts closer together. Starting on Thursday, the front month of the contract is November. Due to less frequent hurricanes and more predictable weather patterns in the fall, analysts believe that current range-bound pricing is a result of these factors.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 2.87 | Positive Crossover | Bullish
• MA 20: 2.84 | Positive Crossover | Bullish
• MA 50: 2.79 | Positive Crossover | Bullish

Simple:

• MA 5: 2.86 | Positive Crossover | Bullish
• MA 20: 2.86 | Positive Crossover | Bullish
• MA 50: 2.77 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.92 | Buy Zone | Bullish

Stochastic Oscillator: 71.25| Buy Zone | Positive

Resistance And Support Levels: 

• R1: 2.94 | R2: 3.16
• S1: 2.82| S2: 2.68

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 2.99 | Take Profit: 3.16 | Stop Loss: 2.88.

BRENT CRUDE OIL:

Oil prices climb as markets focus on supply tightness.

On Wednesday, oil prices increased by more than $1 a barrel as investors focused on supply constraints ahead of the winter and a “soft landing” for the American economy.

U.S. crude oil stockpiles increased by approximately 1.6 million barrels last week, contrary to analysts’ predictions of a reduction of about 300,000 barrels, according to industry figures released on Tuesday.

Markets were still concerned, meanwhile, that U.S. oil stockpiles at the important Cushing, Oklahoma, storage facility might not reach the required levels. Higher borrowing costs due to higher interest rates could hamper economic development and lower demand for oil.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 92.52 | Positive Crossover | Bullish
• MA 20: 92.41 | Positive Crossover | Bullish
• MA 50: 91.28 | Positive Crossover | Bullish

Simple:

• MA 5: 92.25 | Positive Crossover | Bullish
• MA 20: 92.61 | Positive Crossover | Bullish
• MA 50: 91.76 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.39 | Buy Zone | Bullish

Stochastic Oscillator: 75.41| Buy Zone | Positive

Resistance And Support Levels: 

• R1: 93.30 | R2: 96.11
• S1: 90.89| S2: 88.07

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 94.06 | Take Profit: 96.10 | Stop Loss: 92.82.

Elsewhere In the Commodity Market.

Gold prices weaken, spot slips below $1,900 as rate hike fears persist. Copper weakens despite positive Chinese data. XAG/USD bounces off over a one-week low, bearish potential seems intact.

Gold down (0.22%) at 1896.90, Silver down (0.25%) at 22.76, Palladium up (0.34%) at 1237.08, Platinum up (0.34%) at 905.34, Brent Crude Oil up (0.89%) at 93.27, WTI Crude Oil up (1.28%) at 91.55 as of writing time.

Key Economic Events & Data Release Today:

(EUR) European Central Bank Non-monetary Policy Meeting at 12:30

(USD) Crude Oil Inventories Forecast –1.320M, Previous –2.867M at 20:00.