Oil and natural gas: Oil fell below $84.60 on Monday
- On Friday, the oil price rose to the $87.60 level.
- From Wednesday to Friday, the price of natural gas was in constant decline until it reached the $1.67 level.
Oil chart analysis
On Friday, the oil price rose to the $87.60 level. The support in that zone was short-term and followed by a quick pullback by the end of the day to the $85.40 level. During this morning’s Asian trading session, the price fell below $85.20, breaking below the EMA200 moving average. The pressure on the price of oil increases, and it falls to the $84.70 level, forming a new five-day low.
The current bearish consolidation could easily push the price even lower in search of new support. Potential lower targets are $84.60 and $84.40 levels. We need a positive consolidation and a return above the $85.40 level for a bullish option. This is where we return above the EMA200 and the weekly open price. We are moving to the bullish side, and with the support of the EMA200, we could start a further recovery. Potential higher targets are $85.60 and $85.80 levels.
Natural gas chart analysis
From Wednesday to Friday, the price of natural gas was in constant decline until it reached the $1.67 level. That’s where we manage to get support and start the recovery from there. The price rose to $1.74 levels this morning in the Asian session. This is where we encountered the EMA200 moving average. We fail to move above, and another pullback occurs, this time to the $1.70 level. We will try to get new support here and start a positive consolidation from there.
By breaking above $1.74, we cross the EMA200 and hope for its support for further recovery to the bullish side. Potential higher targets are $1.76 and $1.78 levels. We need a pullback below the $1.70 level for a bearish option. After that, we are looking at the zone around $1.68 and will try to look for new support there. Potential lower targets are the $1.67 and $1.66 levels.
