Oil prices experienced an upswing on Tuesday due to China’s higher-than-expected GDP growth of 5.3% in the first quarter. This positive economic performance in the world’s largest oil importer bodes well for future oil demand.
Simultaneously, tensions in the Middle East escalated following Iran’s missile and drone attacks, which prompted Israel to consider a response.
This geopolitical instability, combined with China’s economic growth, is predicted to significantly impact the natural gas and oil markets, potentially leading to sustained price volatility as the situation unfolds.
The current technical outlook for Natural Gas (NG) shows a slight increase of 0.32%, with the commodity trading at $1.8780. It is positioned just below the pivot point at $1.89, indicating the potential for upward movement if it surpasses this level. The immediate resistance levels are set at $1.95, followed by $2.00 and $2.04. A breach of these levels could signal further upward momentum.
On the downside, if NG falls below the pivot, it may test support levels at $1.84, $1.78, and $1.72. Technical indicators suggest a cautious outlook, with the 50-day and 200-day Exponential Moving Averages at $1.92 and $1.90, respectively, highlighting a near-term resistance zone. The market sentiment will remain bearish below $1.89, with a potential shift to bullish above this critical level.
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