Oil and Natural Gas: Oil is testing support at $76.00
- The price of oil retreated yesterday to the $76.00 level.
- This week, the gas price somehow managed to stay above the $2.50 level.
Oil chart analysis
The price of oil retreated yesterday to the $76.00 level. Oil manages to hold above that level during the Asian session. It is now at 76.60% and could go up to the $77.00 level. If it succeeds in this, we will see new turns and the formation of a bottom from which we could start the recovery. Potential higher targets are the $78.00 and $79.00 levels.
We need a negative consolidation and a new drop to the $76.00 support level for a bearish option. A break below would mean we will see further declines in oil prices. Potential lower targets are $75.00 and $73.78, the previous low.
Natural gas chart analysis
This week, the gas price somehow managed to stay above the $2.50 level. After the gas price climbed to the $3.00 level last week, this week’s consolidation is in the $2.50-$2.70 range. During the Asian trading session, the price encountered resistance at the $2.65 level and retreated to the $2.57 level. We need a new break above $2.65 in order to try to test resistance at the $2.70 level.
If we could manage to stay up there, we would be in a good position to break above and trigger further price growth. Potential higher targets are the $2.75 and $2.80 levels. We need a negative consolidation and a test of the $2.50 support level for a bearish option. With a price break below, we would continue the bearish trend, and the potential targets are the $2.40 and $2.30 levels.
