Oil and Natural Gas: Price Continues With The Bearish Trend
- Today’s oil price continues with the bearish trend, testing the $85.00 level.
- The price of gas has fallen below $6.00 again after four months.
Oil chart analysis
Today’s oil price continues with the bearish trend, testing the $85.00 level. During the Asian trading session, the price moved in the range of $85.00-$86.50. For a bullish option, we need positive consolidation and a move toward the $87.00 level. Then we need to try to stay above $86.00 to form a new higher low.
After that, we could expect a recovery in oil prices. Potential higher targets are the $88.00 and $90.00 levels. We need a negative consolidation pullback to the $84.00 level for a bearish option. After that, it is necessary that the price fails to return above the $85.00 level.
Then we would probably see a new pullback and a further drop in the price of oil. Potential lower targets are the $82.00 and $80.00 levels.
Natural gas chart analysis
During the Asian trading session, the gas price formed a new October low at $5.85. The price of gas has fallen below $6.00 again after four months. For now, we have support at the current level, and the price could start a recovery from this point. We first need a positive consolidation and a return above the $6.00 level for a bullish option.
After that, we need an impulse that would move us to $6.20, the previous low. Then we need to hang in there to try to continue the recovery. Potential higher targets are the $6.40 and $6.60 levels.
For a bearish option, we need a continuation of the negative consolidation and a move below the $5.80 level. Increased pressure on the price could lead to a further decline to lower levels. Potential lower targets are the $5.60 and $5.40 levels.