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Natural Gas vs Oil Technical Analysis - Natural Gas vs Oil Trading: 2021-02-02
Gas Oil Technical Analysis Summary
Above 0,966
Buy Stop
Below 0,816
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Gas Oil Chart Analysis
Gas Oil Technical Analysis
On the daily timeframe, GAS/OIL: D1 exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if GAS/OIL rises above the last high: 0.966. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, two lower fractals and a 6-month minimum: 0.816. After opening a pending order, we can move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (0.816) without activating the order (0.966), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis of PCI - Gas Oil
In this review, we propose to consider &GAS/OIL Personal Composite Instrument (PCI). It reflects the dynamics of American natural gas price changes against the American light oil - West Texas Intermediate (WTI). Will the GAS/OIL quotes grow ?
The rise of the quotes means that natural gas is in higher demand than oil. Natural gas is commonly used in the US for heating. The demand for it has grown against the background of a cold snap in the north-eastern part of the country. Commodity Weather Group expects the arctic cold front to remain until at least mid-February. Recall that the heating season in the United States lasts from November to April. NOAA's National Weather Service and Maxar published a similar forecast. Another positive factor for gas quotes was the growth in exports of liquefied natural gas from the USA up to 10.7 billion cubic feet per day - by 15% compared to February 2020. At the same time, US natural gas production last week was 3.8% lower than last year's level, and demand - 14% higher. According to the US Energy Information Administration, US gas reserves last week totaled 2.88 trillion cubic feet. This is 9.3% more than the 5-year average, but the reserves are now at their lowest level in the last 7,5 months. Oil prices have grown significantly since early February when Saudi Arabia began to reduce its production. At the same time, OPEC announced that oil production in January 2021 increased by 160 thousand barrels per day. In theory, the cartel can take some action in the event of an excessive rise in oil prices.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
