Oil and natural gas: Oil is approaching the $90.00 level
- This week’s oil price was moving in the $85.50-$90.00 range.
- The previous two weeks were bearish for the price of natural gas.
Oil chart analysis
This week’s oil price was moving in the $85.50-$90.00 range. Yesterday, we tested $85,50, the lowest level of the week, and got new support there and started the current bullish consolidation. During the previous Asian trading session, the oil price hovered around the $89.00 level. Now, we are still in that zone, and we expect to see a break above and the formation of a new high price. Potential higher targets are $90.00 and $90.50 levels.
We need a negative consolidation and pullback to the $88.50 level for a bearish option. There, we would first form a new daily low and indicate a possible continuation of the pullback to the bearish side. Potential lower targets are $88.00 and $87.50 levels. Additional support at the $87.50 level is the EMA50 moving average.
Natural gas chart analysis
The previous two weeks were bearish for the price of natural gas. After forming a high at the $3.47 level, the gas price started to retreat, falling to the $2.93 level this morning. That’s how we formed a two-week lower low for gas prices. At that level, we are now receiving support, and the decline has been stopped for now. The price recovered slightly to the $2.96 level, and we could soon move above the $3.00 level again. If we were to see it, the potential higher targets are $3.05 and $3.10 levels.
The price of natural gas could have additional pressure in the EMA50 moving average in the zone around the $3.10 level. For a bearish option, we need a negative consolidation and a drop in the price of the $2.90 level. Thus, we would form a new lower low and confirm the continuation of bearish pressure. Potential lower targets are $2.85 and $2.80 levels.
