General analysis
- Oil plunged more than -1.98% in the trading session on Friday, breaking the main support trend line and remaining below it.
- Natural Gas fell almost -1%, breaking the support trend line, currently at an important level. Breakdowns can trigger massive sales.
Oil chart analysis
Oil/USD: 15 minute time frame
In the trading session of November 8, 2024, oil plunged more than -2%, breaking all major support trends and closing below it. The price currently settled below the previous swing, breaking the uptrend price action.
By observing the price on the hourly time frame, it could create a double top pattern and close below the neckline, which would also trigger selling on the hourly time frame. The price was moving in an uptrend with creating higher and lower swings, and finally broke it on November 8, 2024.
Currently, on the 15-minute time frame, the price stops after a major drop, creating an ascending triangle-like structure. The price could rise to retest the retracement level of the February 0.5 dip or it may retest the support trend line. So far, it is holding correctly in the selling trend, indicating some entry triggers mentioned below.
- If the price rises and retests the previous support trend line and fails to close above it, then sellers may consider entering the trade with a stop loss above the previous high and targeting up to the 70 level.
- If prices continue in the selling trend and continue below the level of 69.86, then sellers can enter the trade with a stop loss above the previous high and target up to the level of 69.23.
Natural Gas Chart Analysis
Natural Gasoline/USD 15 minutes of time
In the trading session of November 7, 2024, natural gas initially moved in the zone and faced support and resistance from the trend lines. The price fell sharply in the second half after rejecting the resistance trend line, breaking the supports and settling below them.
On a daily time frame, you can see the price dropping. If it closes above the level of 2.8695, it will create favorable conditions for the market trend. On the time frame, the price was creating a peanut pattern, and finally broke it on November 8, 2024. The next trading session will decide the direction.
Currently, on a 15-minute time frame, the price could break the support trend line of the peanut pattern and stay below it. Additionally, it might need support from the 2.7507 level, respecting the previous support.
If you are looking for an input activator, a few are mentioned below.
- If the price rose to retest the breakout, then the seller may consider entering the trade with a stop loss above the previous high and a target up to the 2.7507 level.
- If the price continues to sell off and breaks the level of 2.7507, then sellers can initiate trades with a stop loss above the previous high and target up to the level of 2.6901.
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