Oil and Natural Gas: Oil’s Price Stopped at the $93.73 Level

• The price of oil was stopped yesterday at the $93.73 level.
• The gas price broke through the $6.60 level yesterday and formed a new higher high at the $6.75 level.

Oil chart analysis

The price of oil was stopped yesterday at the $93.73 level. We thus tested the previous high of October 10. Since then, the oil price has been in retreat, and we are now sliding toward the $90.00 support level. During the Asian trading session, the price quickly fell below the $92.00 level without finding potential support there. There is an increasing chance that we will see a further drop in the price of oil. To continue the bearish option, we need a negative consolidation and a break below the $90.00 support level.

Then we need to maintain ourselves there below. A new bearish impulse would bring us down to the next lower support zone, which is at the $88.00 level. For bullish options, we need a positive consolidation and a return above the $92.00 level first. After that, we would have a chance to try again to reach the previous high at the $93.70 level. Then we need to hold there and try to move above the $94.00 level. Potential higher targets are the $95.00 and $96.00 levels.

Natural gas chart analysis

The gas price broke through the $6.60 level yesterday and formed a new higher high at the $6.75 level. Since then, a new price pullback has started, and we currently have support at the $6.00 level. For a bullish option, we need a new positive consolidation and a price return to the $6.40 level. Then we would have better chances for a new return to $6.80.

Before that, we need to stay above that level. Potential higher targets are the $7.00 and $7.20 levels. For a bearish option, we need a continuation of the negative consolidation and a drop below the $6.00 support level. Then we need to stay below there to continue the pullback. A potential lower target is the $5.80 level.