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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.

Oil chart analysis

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.

Natural gas chart analysis

 



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