Oil and Natural Gas: Are We Expect a Further Price Drop?
- During the Asian trading session, the price of oil fell from $80.00 to $77.00.
- During the Asian trading session, the price of natural gas slipped below the $6.80 support level.
- Crude should find some support as Russia ramps up troops for its war with Ukraine.
Oil chart analysis
During the Asian trading session, the price of oil fell from $80.00 to $77.00, then consolidated and moved from the $78.00 support level. For the bullish option, we now need a new positive consolidation that would first keep us above and move it again towards the $80.00 level with a new bullish impulse. Then we must climb above if we want to continue on the bullish side. Potential higher targets are $81.00 and $82.00 levels. We need negative consolidation and retesting of this morning’s low at the $77.00 level for a bearish trend. A break below would mean the continuation of the bearish option. Potential lower targets are $76.00 and $75.00 levels.
Natural gas chart analysis
During the Asian trading session, the price of natural gas slipped below the $6.80 support level and continued towards the $6.60 level. We are currently at that level, and the bearish pressure due to the strong dollar is still very present on the chart, so we can expect a further price drop. For a bearish option, we need a continuation of the negative consolidation to the $6.40 support level. If we do not find support there, the lower targets are $6.20 and $6.00 levels. For a bullish option, we need a new positive consolidation and a return above the $6.80 level. Then we must hold above and continue the recovery with a new bullish impulse. The next target is at $7.00 with additional resistance in the MA50 moving average. Potential higher targets are $7.20 and $7.40 levels.
Crude should find some support as Russia ramps up troops for its war with Ukraine. European Union sanctions on Russian oil take effect in December. Attention will shift to what OPEC+, led by Russia, can do when they meet on October 5, after agreeing to a modest output cut at their last meeting.