Oil and Gas: The Oil Price Retreated After Failing to Climb

• During the Asian trading session, the oil price retreated after a failed attempt to climb above the $90.00 level. The price of oil is currently testing support at $88.00. 
• The negative for the price is that it failed to form a new higher high, which would mean that this pullback could continue.

Oil chart analysis

During the Asian trading session, the oil price retreated after a failed attempt to climb above the $90.00 level. The price of oil is currently testing support at $88.00. The negative for the price is that it failed to form a new higher high, which would mean that this pullback could continue. 

For such an option, we need a continuation of the negative consolidation and a move below the $88.00 level. After that, our target is the support zone of $85.00-$86.00. For a bullish option, the oil price needs to rise above $90.00 first and try to consolidate there. We could then expect a new bullish impulse and continued price recovery. Potential higher targets are the $92.00 and $93.00 levels.

Natural gas chart analysis

During the Asian trading session, natural gas prices are retreating from the previous high at the $6.70 level. The price is now making a bearish turn below the $6.60 support level. Now we can expect a pullback to the lower support zone around the $6.40 level. If the bearish pressure continues, the price could visit the $6.20 and $6.00 levels. 

For a bullish option, we need positive consolidation and price growth up to the $6.80 level. This would form a three-day higher high, and we could expect a potential gas price recovery. The next higher targets are the $6.90 and $7.00 levels.