Oil and Natural Gas: A Positive Day for the Oil Price
- Yesterday was a very positive day for the price of oil.
- The gas price was stable during the Asian trading session and hovered around the $5.60 level.
Oil chart analysis
Yesterday was a very positive day for the price of oil. The price jumped from $84.00 to $88.00 level. During today’s Asian trading session, the price of oil encountered resistance at the $88.00 level. Since then, the price of oil has been retreating, and today’s low was at the $87.30 level.
We now need a positive consolidation and a return above the $88.00 level for a bullish option. Then it is necessary to maintain up there and, with a new bullish impulse, start the continuation of the recovery.
Potential higher targets are the $90.00 and $92.00 levels. We need a negative consolidation and a deeper pullback in oil prices for a bearish option. Then they would return to the previous consolidation zone. Potential lower targets are $85.00, $84.00, and $82.00 at the bottom of this zone.
Natural gas chart analysis
The gas price was stable during the Asian trading session and hovered around the $5.60 level. Now we see a minor pullback to the $5.50 level. Yesterday, the price of gas retreated from the $5.60 level to the $5.20 level, after which the price returned to its initial position. We need a negative consolidation and a retest of support at the $5.20 level for a bearish option.
The inability of gas prices to find support there would lead to further price pullbacks. Potential lower targets are the $5.00 and $4.80 levels. We need a positive consolidation and a return above the $5.60 level for a bullish option.
Then we need to stay above and try to continue the bullish option with new momentum. Potential higher targets are the $5.80 and $6.00 levels.