Oil and natural gas: Gas falling to a 7-day low at $6.00
- On Friday, we saw a recovery in oil prices after falling to the $73.00 level.
- This morning, the gas price fell to a seven-day low at the $6.00 level.
Oil chart analysis
On Friday, we saw a recovery in oil prices after falling to the $73.00 level. A bullish impulse followed, pushing the price to $75.70 at the end of the day. During the Asian trading session, we see new volatility in oil prices and a new pullback below the $75.00 support level. The fall does not stop there, and the price slides to this morning’s low at $73.80. For a bearish option, we need a continuation of the current negative consolidation and a drop to support $73.00.
A break below could send the price to last week’s low at $70.00. We need a positive consolidation and a move above the $76.00 level for a bullish option. Additional resistance at that level is in the upper trend line. A price break above would certainly be beneficial to us. And potential higher targets are the $77.00 and $78.00 levels.
Natural gas chart analysis
This morning, the gas price fell to a seven-day low at the $6.00 level. After which, we see the stop of the fall and a minor recovery to the $6.18 level. We need a break above $6.20 and a return to $6.40 to potentially form a bullish trend. If we could manage to move up there, we would have a good chance to reach the previous resistance zone at the $6.80 level.
A potential higher target if we manage to stay up there is the $7.00 level. For a bearish option, we need a negative consolidation and a new break below the $6.00 level. After that, we would probably see a further drop in gas prices. And potential lower targets are the $5.80 and $5.60 levels.
