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U.S. Crude and Natural Gas Trading Update: Bullish Trends and Support Levels,June20,2023


xs.com

20-06-2023

In the latest trading session, U.S. crude oil and natural gas both showed bullish movements throughout the day. This article provides an overview of the key support and resistance levels and outlines potential trading positions for profiting from these commodities.

Key Points:

  • U.S. crude oil experienced a significant rise after bouncing back from the important support level of 70.8. It has now reached the resistance zone at 72.4-72.5 levels.

  • Traders who aimed for a safe entry should wait for the price to reach 71.5 levels, below which the next major support can be expected at 71.2 and 71.

  • For those willing to take on more risk, a sell entry can be considered at 71.8. However, caution is advised as the moving averages at 71.5 and 71.2 could provide strong support, leading to a potential bounce back.

  • Technical indicators show divergence in prices from moving averages, with the stochastic indicator dropping and the MACD showing bullish tendencies. RSI is near the top but indicating a slight bearishness.

  • U.S. crude oil has been trading within the range of 70.8 to 72.4-72.5 levels, and the formation suggests a sideways movement between these levels.

  • In the event of a breakout above 72.5, bullishness would be confirmed. Further targets could include 73, 73.6, and 74 levels.

  • The 20-period moving average acts as support on the downside, while the 50-period moving average serves as resistance, indicating a moderately bullish formation.

  • Natural gas prices exhibited a rise, followed by retracement and higher highs at 2.75-2.76 levels. Support levels have also been observed.

  • Selling opportunities could arise below the 2.72 level, but strong support is anticipated at 2.7, followed by 2.68. Further bearishness might take prices down to 2.64 levels.

  • Reversal becomes more likely around 2.55-2.5 levels, indicating a potential trend change.

  • Technical indicators indicate divergence, with stochastic showing a drop, MACD crossing over with bearish tendencies, and RSI cooling down from an overbought state.

  • On the daily charts, natural gas is trading within a bullish channel, but a possible retracement followed by another rise is expected.

  • Traders can consider selling at 2.72 levels with a stop loss at 2.64, while buying opportunities may arise around 2.75 levels.

Conclusion: The U.S. crude oil market displayed bullish movements, while natural gas prices showed potential for retracement but remained within a bullish channel. Traders are advised to be cautious, considering the support and resistance levels, technical indicators, and the potential for price reversals. It is important to trade with a stop loss and stay informed about market updates to make informed trading decisions.


Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Trading in commodities involves risks, and readers should conduct their own research and consult with a professional advisor before making any investment decisions.

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