Natural Gas Teeters on Breakout, Crude Oil Stuck in Downtrend
The natural gas market is currently stuck in an extremely tight range at the bottom of a massive two-year falling wedge. A significant influx of volume is expected once this breaks.
To confirm a bull breakout, traders need to see a decisive close above $3.30 and $3.40, targeting $3.50. Conversely, if natural gas falls below the established double-bottom support, it could trigger a bear breakdown.
The crude oil market remains in a downtrend, with bears firmly in control. A textbook triple RSI divergence has signaled the ultimate macro top, and until the daily trend is invalidated, oil prices are expected to continue cooling off.
If economic conditions continue to soften, crude oil could easily test the $90, $95 region, with an eye towards the $80s by year's end.