Oil and natural gas: Oil prices continue to rise
- The price of oil broke the previous resistance level at $78.00 yesterday.
- During the Asian trading session, the natural gas price remained above the $5.40 level.
Oil chart analysis
The price of oil broke the previous resistance level at $78.00 yesterday. During the Asian session, the oil price continued its bullish trend, and also in the European session. We are now at the $79.50 level and could soon find ourselves at the $80.00 level. To continue the bullish option, we need to break above the $80.00 level and stay up there. With further positive consolidation, we would continue with the recovery. Potential higher targets are the $81.00 and $82.00 levels.
We need a new negative consolidation and a price pullback below the $79.00 level for a bearish option. After that, we would likely see a drop to the $78.00 level of support. And a price breakout below would further intensify the bearish pressure. Potential lower targets are the $77.00 and $76.00 levels.
Natural gas chart analysis
During the Asian trading session, the natural gas price remained above the $5.40 level. Today’s high was at $5.60, and for now, this is our resistance area. We need a break above the $5.60 level for a bullish option and try to hold above. Then, with a positive consolidation, we would start the continuation of the recovery. Potential higher targets are the $5.80 and $6.00 levels.
For a bearish option, we need a continuation of the negative consolidation and a drop in the gas price to the $5.20 support level. A price break below would drop us to a test of the $5.00 support level. Potential lower targets, if we do not hold there either, are the $4.80 and $4.60.
