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Natural Gas vs Oil Technical Analysis - Natural Gas vs Oil Trading: 2020-10-06
Gas Oil Technical Analysis Summary
Above 1.306
Buy Stop
Below 1.023
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
Gas Oil Chart Analysis
Gas Oil Technical Analysis
On the daily timeframe, GAS/OIL: D1 approached the upper border of the neutral range. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish movement if GAS/OIL rises above the last 3 upper fractals: 1.306. This level can be used as an entry point. We can set a stop loss below the Parabolic signal, the lower Bollinger band, the 200-day moving average line and the last 2 lower fractals: 1.023. After opening a pending order, we 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 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 (1.023) without activating the order (1.306), it is recommended to delete the order: some internal changes in the market have not been taken into account.
Fundamental Analysis of PCI - Gas Oil
In this review, we propose to consider the &GAS/OIL Personal Composite Instrument (PCI). It reflects the dynamics of changes in the American natural gas prices over West Texas Intermediate (WTI) - the American light crude oil. Will the GAS/OIL quotes grow ?
Their upward move means that natural gas is in higher demand than oil. This PCI showed strong growth in mid-April of this year, during the 1st wave of coronavirus. Later, it corrected downwards. A similar surge is possible if there is a second wave of coronavirus. In this case, the demand for oil and motor fuel may decrease as lockdowns resume and traffic flows decline. In theory, the demand for gas can be reduced to a lesser extent, since it is used for winter heating and power generation. According to the U.S. Energy Information Administration (EIA), US oil reserves are now 12.4% higher than the 5-year average, and natural gas reserves are about the same - higher by 12.1%. Both types of raw materials are rising in price against the backdrop of Hurricane Delta in the Gulf of Mexico, which interferes with the operation of oil and gas production platforms. The growth of liquefied gas (LNG) exports by more than 20% compared to last year is helping to increase natural gas 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.
