Oil and Gas: Failed to Break Above the Upper Trend Line
- Yesterday, the price of oil was in the range of $80.00-$82.00. We failed to break above the upper trend line and 61.8% Fibonacci.
- The gas price yesterday fell again to the $6.50 support level.
Oil chart analysis
Yesterday, the price of oil was in the range of $80.00-$82.00. We failed to break above the upper trend line and 61.8% Fibonacci. Today we had another attempt to meet above but without success. In the previous two hours, we see a new price pullback to 50.0% Fibonacci at $81.40. If we don’t find support here either, we move down to the 38.2% Fibonacci at the $80.20 level. A further price break below would only take us back to the $76.00-$78.00 support zone. For a bullish option, we need a breakout of the oil price above $82.00 and the upper trend line. Then we need to stay up and move towards the next resistance level with a new bullish impulse. Potential higher targets are $84.00, $85.00 and $86.00 levels.
Natural gas chart analysis
The gas price yesterday fell again to the $6.50 support level. It was at that level three times in the last week, and now we see a new recovery to the $6.85 level. If the current recovery continues, we could once again test the $7.00 resistance level at the 38.2% Fibonacci. To continue on the bullish side, we need a break above and the formation of a new higher high. Target is 50.0% Fibonacci at $7.30, then next at 61.8% Fibonacci at $7.50. For a bearish option, we need a negative consolidation and the formation of a lower high. After that, we could expect a further pullback to the support zone. A retest of the support zone could intensify the bearish pressure, and the gas price could drop below lower levels. Potential lower targets are $6.40 and $6.20 levels.