Oil and natural gas: Oil jumps above the $90.00 level
- During the Asian trading session, the oil price formed a new high at the $91.11 level.
- This week, we saw a bullish scenario of natural gas prices up to $2.78.
Oil chart analysis
During the Asian trading session, the oil price formed a new high at the $91.11 level. The last time the oil price was in that zone was in November of the previous year. We are currently encountering resistance in that zone and pulling back to the $90.50 level. It is possible that we will see a test of $90.00 and an attempt to get new support there. A break below could mean that the price is not strong enough to start a further recovery and that we will continue to fall to lower levels. Potential lower targets are $89.00 and $88.00 levels.
We need a positive consolidation and a return to the $91.00 level for a bullish option. Then, we need to see a break above to see a continuation to the bullish side. With a new impulse, oil would then form a new higher high, and the potential higher targets are $92.00 and $93.0.
Natural gas chart analysis
This week, we saw a bullish scenario of natural gas prices up to $2.78. At that price level, it encounters resistance and retreats to the $2.66 level. During the Asian session, we got support in that zone and initiated a positive consolidation and recovery to the $2.70 level. Based on today’s consolidation, we can expect to see a continuation to the bullish side.
Today, there is no important economic news that could increase the market’s volatility, which means that the price of gas could rise unhindered. Potential higher targets are the $2.72 and $2.74 levels. We need a negative consolidation and pullback below the $2.66 support level for a bearish option. After that, we could expect to see a further retreat in the price of natural gas. Potential lower targets are $2.64 and $2.62 levels.