Oil and natural gas: Oil price and new decline below $75.00
- Yesterday’s attempt by the price of oil to initiate a new bullish trend was stopped at the $78.00 level.
- During the Asian session, the gas price hovered around the $2.50 level.
Oil chart analysis
Yesterday’s attempt by the price of oil to initiate a new bullish trend was stopped at the $78.00 level. After which, a pullback followed very quickly and fell below the $76.00 level. During the Asian trading session, the oil price continued to slide, and this morning’s low was at the $74.75 level. Since then, oil prices have started a minor recovery, and now we are at the $75.25 level.
The news about the continued increase in interest rates by central banks, especially by the FED, gives us the impression that the global economy will slow down. This could contribute to the oil price continuing to slide toward lower support levels. The potential next lower target is $73.78, the previous low from the end of February.
Natural gas chart analysis
During the Asian session, the gas price hovered around the $2.50 level. We are still in the Zoi zone, and the price continues to move sideways. We need positive consolidation and price growth to the $2.60 level for a bullish option. Then we need to see a breakout above and stay up there.
With a new impulse, we would start a further recovery of gas prices. Potential higher targets are the $2.65 and $2.70 levels. We need a negative consolidation and a drop below the $2.45 level for a bearish option. With that, we would fall below the March low and probably continue on the bearish side. Potential lower targets are the $2.35 and $2.30 levels.