Oil and Gas Analysis: Oil Rises While Gas is in a Downtrend

Overall Analysis

1. Oil continues its momentum towards downside with swing creation indicating selling opportunities. 
2. Natural Gas is trying to break the selling trend, but 0.5 feb retracement gives strong rejection. 

Oil Chart Analysis 

Oil/USD 15-Minute Chart (Source: TradingView)

On the 31st Oct 2024 trading session, oil prices showed a bull run while taking support of the trendline. Price made higher highs and higher lows, indicating a bullish momentum. 

On a daily time frame, the price can be seen taking support from major support levels and is continuously moving up since the last 4 trading sessions. The price on a daily time frame is in a constant selling zone, making lower lows and lower highs. 

Currently, the price is holding at higher levels, showing buyer strength in the lower time frame. Major rejection levels appear at the 72 and 72.5 zones, where the price previously faced rejection three times.

If looking for an entry, then there are three conditions in which one can plan an entry in oil. 

1. If the price approaches and takes support at the trendline while forming a strong bullish candle, you can plan an entry with a stop loss below the previous swing and set targets up to 72.
2. If the price rejects the 72 level, traders can enter a sell position with a stop above the previous swing and a target of 70.30.
3. If the price breaks the 72.30 level and settles above it, then a buying entry can be made with the stop loss below the previous swing and target to 73.50.

Natural Gas Chart Analysis 

Gas/USD 15-Minute Chart (Source: TradingView)

On the 31st Oct 2024 trading session, the price dropped, breaking the support level and continuing the rally. On a higher time frame, Natural Gas is currently creating an “M� pattern. 2.6330 level works as neck-like for the pattern breaking which can trigger massive selling. 

If we observe the price behaviour, we can see price moves in a pattern, the price falls and creates an accumulation zone, then breaks the zone and continues the rally. 

Talking about the entry trigger we have two entry triggers. 

1. If the price breaks out of the rectangle accumulation zone and settles below the 2.7312 level, it targets 2.6330, with a stop loss set above the previous swing high.
2. Safe entry can be made if the price goes and rejects from the resistance trendline. Enter with a stop loss set above the previous swing high, aiming for a target of 2.6330.

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