Bullish Consolidation: Oil Price Approaching $80.00
- On Wednesday, we saw a jump in the price of oil to the $80.64 level.
- The price of natural gas was under pressure yesterday at $1.90, after which we saw a bearish impulse and a drop to the $1.76 level.
Oil chart analysis
On Wednesday, we saw a jump in the price of oil to the $80.64 level. After that, the price initiated a pullback to support at $78.00. That’s where we got new support and started to recover. We quickly moved back above the EMA200 moving average and $79.00. During the Asian trading session, the oil price continued with bullish consolidation up to the $79.85 level. We are now very close to retesting and climbing above the $80.00 level.
Depending on the impulse, the price could test the weekly high. Potential higher targets are the $80.50 and $81.00 levels. For a bearish option, we need a pullback below the $79.50 level. There, we would test the Asian low, and a drop below it would lead to the formation of a new daily low. Potential lower targets are the $79.00 and $78.50 levels. Additional price support in the zone around $78.50 is the EMA200 moving average.
Natural gas chart analysis
The price of natural gas was under pressure yesterday at $1.90, after which we saw a bearish impulse and a drop to the $1.76 level. During the Asian trading session, the price was stable above last night’s low. Based on that, we hope that it will have the strength to initiate a correction and move above the $1.80 level. We are testing the weekly open price there and it would be desirable to move above it in order to close the week on the positive side.
Potential higher targets are the $1.82 and $1.84 levels. For a bearish option, we need a negative consolidation and a pullback of the price below the $1.76 level. This would lead to a drop to a new weekly low and confirm a bearish option for natural gas prices. Potential lower targets are the $1.74 and $1.72 levels.
