Oil and Natural Gas: Oil is recovering above $76.00
On Monday, we saw an attempt by the oil price to hold above the $80.00 level.
This week has been very bearish for the price of natural gas.
Oil chart analysis
On Monday, we saw an attempt by the oil price to hold above the $80.00 level. It seems that there was a lot of pressure on the price, and already, at the beginning of Tuesday, we see a break below the $80.00 level and a continuation of the further retreat of the price. On Wednesday, the price fell to the $74.88 level.
For now, we find support there and with bullish consolidation, we make a jump to the $77.00 level. Yesterday, we failed to break above and saw another pullback to the $75.20 level.
The current price movement of oil is around $76.00, and we are now close to the support zone, remaining under bearish pressure. Potential lower targets are $74.00 and $73.00 levels.
We need a positive consolidation and a jump to the $77.00 level for a bullish option. We then need a break above to continue on the bullish side. Potential higher targets are $78.00 and $79.00 levels.
Natural gas chart analysis
This week has been very bearish for the price of natural gas. At the market’s opening this week, the gas price fell from $3.51 to $3.40, creating a bearish gap. At the $3.40 level, we encountered the EMA50 moving average, which failed to give us satisfactory support, and we saw a breakout below and continued bearish consolidation. That consolidation brought us down to the $3.00 level this morning. Potential lower targets are $2.95 and $2.90 levels.
We need a positive consolidation and price movement at least to the $3.10 level for a bullish option. Then, it would be desirable to hold on there and form a new price bottom at that level. With the next impulse, we would initiate a bullish consolidation and recovery of natural gas prices. Potential higher targets are $3.15 and $3.20 levels.
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