Oil and Natural Gas: Oil is down to $87.00 this morning

At the beginning of the Asian session last night, the oil price made a bearish gap and began to retreat.
We saw a bearish gap in natural gas prices at the market opening last night.

Oil chart analysis

At the beginning of the Asian session last night, the oil price made a bearish gap and began to retreat. This negative consolidation was stopped at $87.00, where the price found support and started a bullish consolidation to the $87.50 level. We are also fighting here to get back above the EMA50 moving average to get its support and continue to the bullish side. Potential higher targets are $88.00 and $89.00 levels.

We need a negative consolidation and a drop below the support at the $87.00 level for a bearish option. Thus, we would form a new low for this week, which could trigger a further price drop. We would also go back below the EMA50, which could have a negative impact on the price of oil. Potential lower targets are $86.50 and $86.00 levels.

Natural gas chart analysis

We saw a bearish gap in natural gas prices at the market opening last night. This triggered a bearish consolidation to support at the $2.86 level. After the support, the price starts a bullish consolidation and climbs up to the $2.90 level. We need a breakthrough to $2.95 in order to partially release the bearish pressure and continue towards the $3.00 level.

A further jump above the $3.00 level could cause natural gas to initiate a longer bullish consolidation that would last this week. Potential higher targets are $3.05 and $3.10 levels.

We need a negative consolidation and a drop below this morning’s support for a bearish option. Thus, we would form a new low and thus confirm the bearish option. Potential lower targets are $2.80 and $2.75 levels.