Oil and natural gas: Oil under pressure at $80.00
- Yesterday, the price of oil reached its three-week high at the $81.15 level.
- During the Asian trading session, the price of natural gas continued to exert pressure at the $4.90 support level.
Oil chart analysis
Yesterday, the price of oil reached its three-week high at the $81.15 level. A pullback below $80.00 soon followed, and it didn’t stop there either. During the Asian trading session, the price of oil fell to the $78.40 level. In the last 24 hours, we see a strong price pressure that could continue below the $78.00 level. The previous low was at the $77.00 level, and if we see a breakout below, a stronger fall could occur until some subsequent support. Potential lower targets are the $76.00 and $75.00 levels. We need a positive consolidation and a return above the $80.00 level for a bullish option. Then we need to stay up there and, with the next impulse, continue the oil price recovery. A potential higher target is the previous high at the $81.00 level.
Natural gas chart analysis
During the Asian trading session, the price of natural gas continued to exert pressure at the $4.90 support level. A breakout below could happen soon, leading to further gas price declines. The next target and potential support are at the $4.75 level, the October low. Potential lower targets, if there is a breakout below this support, are $4.60 and $4.40. We need a positive consolidation and a return above the $5.00 level for a bullish option. The next important level is $5.20, where we had the previous resistance zone. A price break above it and trying to hold above it would be very helpful for us to continue the gas price recovery. Potential higher targets are the $5.40 and $5.60 levels.
