On the other hand, natural gas (NG) prices have also decreased due to reduced demand from warmer temperatures across the U.S. In the Northeast, rising temperatures led to fewer heating degree days, while in the Southeast, stable temperatures resulted in fewer cooling needs. Natural gas prices rebounded from strong support but dropped again from $2.48.
WTI Oil (CL) Technical Analysis
WTI Daily Chart – Descending Broadening Wedge
WTI crude oil opened with a gap on Monday and continued to decline. The price trades within a descending broadening wedge pattern, indicating strong volatility. It is below the 50-day and 200-day SMAs, with the Monday gap suggesting significant bearish pressure in the oil market. Additionally, the RSI is reversing lower from the mid-level, highlighting bearish momentum. The daily chart shows that WTI crude oil targets the $62-$63 level. This level of support is measured using the descending broadening wedge line.
The emergence of a broadening wedge pattern highlights market volatility, indicating the potential for significant price moves in both directions. While geopolitical tensions may be easing in the short term, the underlying issues remain unresolved. Therefore, any potential event may further create price fluctuations, keeping strong price ranges in both directions as the primary scenario for the oil market.