Oil and Natural gas: Oil prices Are Still Under Pressure
- During the Asian trading session, the oil price is still under pressure at the $71.00 level.
- The growth in the price of natural gas stopped at the $5.90 level yesterday.
Oil chart analysis
During the Asian trading session, the oil price is still under pressure at the $71.00 level. For now, the price is maintained above, but a breakout below is more and more realistic. For such a thing, a negative consolidation and lowering of the oil price to the $70.00 support level are needed. Potential lower targets are the $69.00 and $68.00 levels.
We need a positive consolidation and a move above the $72.00 level for a bullish option. Then we need to try to stay above that level. With a new bullish impulse, we would move higher than the uncomfortable zone. Potential higher targets are the $73.00 and $74.00 levels. The rise in the number of infections is likely to slow China’s economic growth in the next few months, leading to a recovery only later in 2023.
Natural gas chart analysis
The growth in the price of natural gas stopped at the $5.90 level yesterday. After which, we see a pullback to the $5.55 level. The gas price has consolidated and moved above the $5.60 level. For a bullish option, we need positive consolidation and a return to the zone of yesterday’s high. A move above would form a new higher high, meaning we would see a continuation of the recovery.
Potential higher targets are the $6.00 and $6.20 levels. We need a negative consolidation and a price pullback below the $5.50 level for a bearish option. A break below could lead to further declines. And the potential lower targets are the $5.40 and $5.20 levels.