Oil and natural gas: Oil retreats to the $86.00 level
- The oil price has been retreating since Wednesday after jumping to the $88.05 level.
- The price of natural gas continues to recover after falling yesterday to the $2.44 level.
Oil chart analysis
The oil price has been retreating since Wednesday after jumping to the $88.05 level. Since then, we have been in a bearish consolidation with the formation of this morning’s low at the $86.00 level. The price started to recover in the EU session by growing to the $86.90 level. We need a continuation of this positive consolidation if we want to see a further recovery in oil prices. Potential higher targets are $87.50 and $88.00 levels.
We need a negative consolidation and a drop below this morning’s support at the $86.00 level for a bearish option. After that, we will see the formation of a new low and the confirmation of the bearish option. Potential lower targets are $85.50 and $85.00 levels. Additional support at the $85.00 level could be found in the EMA50 moving average.
Natural gas chart analysis
The price of natural gas continues to recover after falling yesterday to the $2.44 level. During the Asian trading session, we moved around the $2.55 level, and now in the EU session, we see the continuation of the bullish consolidation. The price could soon return above the $2.60 level and thus find support in the EMA50 moving average. Potential higher targets are $2.65 and $2.70 levels.
We need negative consolidation and price pullback below the $2.50 level for a bearish option. There, we would approach the previous support zone. This could influence us to see a breakout below and the formation of a new low. Potential lower targets are $2.40 and $2.35 levels.
