Oil and Natural Gas: Oil drops to support at $74.00
- The oil price continues to retreat and falls to the $74.00 level.
- The price of natural gas fell below $2.20 yesterday.
Oil chart analysis
The oil price continues to retreat and falls to the $74.00 level. Yesterday we saw oil price weakness continue with the inability to break above the $78.00 level. This led to a pullback to the $76.00 level. Then we had the news about Crude Oil Inventories, which managed to recover the price for a short time, but only up to the $77.00 level.
After this, we see several strong bearish impulses and a price drop to $74.00. During the Asian trading session, the price of oil remained above yesterday’s low. We are now seeing a new increase in price pressure, which could break past support and form a new oil price low below the $74.00 level. Potential lower targets are the $73.00 and $72.00 levels.
Natural gas chart analysis
The price of natural gas fell below $2.20 yesterday. The pullback was stopped at the $2.10 level. We are now back below the EMA50 moving average, which could bring new uncertainty to further recovery. We need a negative consolidation and a drop below the $2.10 support level for a bearish option.
A pullback below gas prices would form a new weekly low, and the potential lower targets are the $2.05 and $2.00 levels. We need a positive consolidation and a return above the EMA50 and the $2.20 level for a bullish option. After that, we could expect to see continued recovery. Potential higher targets are the $2.25 and $2.30 levels.