Oil and Natural Gas: Oil prices continue to fall
- The price of oil is recovering after falling to $77.20 on Friday.
- During the Asian trading session, gas prices consolidated around $6.00.
Oil chart analysis
The price of oil is recovering after falling to $77.20 on Friday. During the Asian trading session, the price recovered to the $80.00 level, and we are now moving slightly below that level. The current picture shows us that we could see a continuation of the recovery to the next resistance zone around the $82.00 level. For a bullish option, we need to hold up there and try to break above.
After that, potential higher targets are the $83.00 and $84.00 levels. For the bearish option, we need negative consolidation and a break below the $80.00 support level. After that, the oil price will continue bearish consolidation down to the next support zone, around $76.00. If we do not find support in that area, the oil price will probably continue on the bearish side.
Natural Gas chart analysis
During the Asian trading session, gas prices consolidated around $6.00. Currently, the gas prices could break above and rise to the $82.00 resistance level. for a bullish option, and we need a continuation of positive consolidation and a break above the $6.40 level. After that, we need to stay above the $6.20 level in order to start a further recovery with a new bullish impulse.
Potential higher targets are $6.60 and the $6.80 November high. For a bearish option, we need a negative consolidation and a return below the $6.00 level. After that, the gas price could drop to support the $5.80 level, where we have additional support in the lower trend line. A price breakout below would add bearish pressure on gas prices. Potential lower targets are the $5.60 and $5.40 levels.
