Oil and Natural Gas: Oil is struggling to stay above $85.00
- Oil prices have been under pressure since the beginning of this week.
- Natural gas prices have been in a strong bullish consolidation since the beginning of this week.
Oil chart analysis
Oil prices have been under pressure since the beginning of this week. Yesterday we saw the price struggling to move above $87.00 and the weekly open price. Increased pressure in that zone pushes us down to the $85.05 level. We can say that we are testing support at the $85.00 level here. An additional support for the price is the EMA200 moving average. During the Asian trading session, we successfully held above these levels and advanced to $85.50.
We now need to continue this positive consolidation to move above the $86.00 level. Potential higher targets are $86.50 and $87.00 levels. We need a negative consolidation and a drop in oil prices below the $85.00 level for a bearish option. We are close to testing the weekly low at the $84.66 level. Potential lower targets are $84.50 and $84.00 levels.
Natural gas chart analysis
Natural gas prices have been in a strong bullish consolidation since the beginning of this week. A bullish Monday pushed the price up to the $1.76 level. On Tuesday, we first saw consolidation in that zone, after which we continued to grow up to the $1.84 level. This is where we encounter the first resistance and make a pullback to $1.76. In this way, we retest that support zone from which we return again above the $1.82 level.
Today, we are climbing and testing the $1.84 weekly high again. The current price action tells us we could see a breakout above and a jump to new weekly levels. Potential higher targets are $1.86 and $1.88 levels. For a bearish option, we need a negative consolidation and pullback below the $1.80 support level this morning. With that, we go to a new daily low and move away from the previous bullish path.
