General analysis
- Oil continues its downward momentum and creating swings indicates selling opportunities.
- Natural gas is trying to break the selling trend, but the 0.5 retracement from February generates strong rejection.
Oil chart analysis
Oil/USD 15-minute chart (Source: TradingView)
In the trading session on October 31, 2024, oil prices showed a bullish run while supporting the trend line. The price made higher highs and higher lows, indicating bullish momentum.
On a daily time frame, the It can be seen that the price is receiving support from the major support levels and increasing continuously since the last 4 trading sessions. The price on a daily time frame is in a constant selling zone, making lower lows and higher highs.
Currently, the price is holding at higher levels, which shows the strength of the buyer in the shortest period of time. The main rejection levels appear at the 72 and 72.5 zones, where the price previously faced rejection three times.
If an entry is sought, there are three conditions under which an entry into oil can be planned.
- If the price approaches and finds support at the trend line while a strong bullish candle forms, you can plan an entry with a stop loss below the previous swing and set targets up to 72.
- If the price rejects the 72 level, traders can enter a sell position with a stop above the previous swing and a target of 70.30.
- If the price breaks the level of 72.30 and stabilizes above it, then a buy entry can be made with the stop loss below the previous swing and the target at 73.50.
Natural Gas Chart Analysis
Gasoline/USD 15-minute chart (Source: TradingView)
On the trading session of October 31, 2024, the price fell, breaking the support level and continuing the rally. On a higher time frame, Natural Gas is currently creating an “M” pattern. The 2.6330 level works as a neckline to break the pattern, which may trigger massive selling.
If we look at the price action, we can see that the price moves in a pattern, the price falls and creates an accumulation zone, then breaks the zone and continues the rally.
Speaking of the input trigger we have two input triggers.
- If the price breaks out of the rectangle accumulation zone and settles below the 2.7312 level, it targets 2.6330, with a stop loss set above the previous high.
- A safe entry can be made if the price rises and rejects the resistance trend line. Enter with a stop loss set above the previous high, targeting a target of 2.6330.
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