Oil and Natural Gas: Oil remains above the $72.00 level
- The oil price is retreating after forming a high on Tuesday at the $76.16 level.
- The price of natural gas has been in a stable, bullish consolidation since mid-December.
Oil chart analysis
The oil price is retreating after forming a high on Tuesday at the $76.16 level. We stopped there and began a pullback, dropping the price to $71.61 last night. During the previous Asian trading session, oil gained support and recovered to $72.30. We see a small bullish consolidation that could continue today’s recovery and move the price to higher levels. Potential higher targets are $72.50 and $73.00 levels.
In the zone around $73.50, oil encounters the EMA50 moving average, and there, we expect greater resistance to the bullish option. We need a negative consolidation and price pullback to the $71.50 level for a bearish option. There, the price would be under great pressure to form a new low, thereby confirming the bearish momentum. Potential lower targets are $71.00 and $70.50 levels.
Natural gas chart analysis
The price of natural gas has been in a stable, bullish consolidation since mid-December. On December 13, the price had fallen to the $2.14 level, and since then we have only been watching the growing consolidation with the formation of higher lows. Last week, the price managed to stabilize above the $2.25 level, which gave some certainty to the bullish continuation. This week’s high price was formed yesterday at the $2.53 level. We stopped there, and the price retreated during the Asian trading session to support at the $2.47 level.
There, we find new support, move above $2.49, and now expect to attack the $2.50 level again. Potential higher targets are the $2.55 and $2.60 levels. We would have to go down to the $2.45 level for a bearish option. This would make a formal daily low and confirm the bearish momentum. Potential lower targets are $2.40 and $2.35 levels.
