Oil and natural gas: Natural gas finds support at $1.75
- This week, oil price climbed up to the $78.52 level.
- Finally some positive developments on the natural gas chart.
Oil chart analysis
This week, oil price climbed up to the $78.52 level. On Monday and Tuesday, we tried several times to reach that level, but we always bounced back down. Yesterday, a more concrete bearish step was made by pulling below the $77.50 level, and a low was formed at the $76.80 level. The price stopped there and pulled above the $77.00 level. During this morning’s Asian trading session, oil was on the positive side, staying above the $77.00 level.
With the beginning of the EU session comes instability on the oil chart; the price breaks the support level and falls to $76.29. Thus, we form a daily low and get confirmation of bearish momentum. The EMA200 moving average creates additional pressure; we failed to hold above its line and fell below. Potential lower targets are $76.00 and $75.50 levels.
Natural gas chart analysis
Finally some positive developments on the natural gas chart. Monday and Tuesday were calm, and the price moved in the $1.58-$1.64 range. At the opening of the Asian session this morning, the price made a bullish impulse from $1.62 to $1.74.
After that, it manages to stay high in the resistance zone; in the EU session, we see a breakthrough above and a jump to the $1.78 level.
Here, we test the EMA200 and hope for a positive outcome and a move above the $1.80 level. Potential higher targets are $1.85 and $1.90 levels. A pullback of the price below the EMA200 and the $1.76 level is required for a bearish option. We would be under strong pressure here because we have been in a bearish trend for a long time.
The retreat below the $1.70 level is the first indication of a renewed weakening of the price of natural gas. Potential entry points are the $1.65 and $1.60 levels.
