Oil and Natural Gas: prices recovery compared to yesterday
- Yesterday the oil price dropped to $75.25.
- Yesterday’s gas price formed a new two-week higher high at $6.70.
Oil chart analysis
Yesterday the oil price dropped to $75.25. Soon the price went back up to $79.00 and didn’t stay down for long. During the Asian trading session, the price hovered around the $80.00 level. The bullish consolidation continued during the European session, and the price moved above the $81.00 level. To continue the bullish option, we need further positive consolidation.
The first next resistance could be at the $82.00 level. A break above and staying above would be very beneficial for us to continue the bullish trend. Potential higher targets are the $83.00 and $84.00 levels. For a bearish option, we need a negative consolidation and price pullback to the $80.00 level. After that, we expect a breakout below and to hold there. Then we should see a further pullback in oil prices. Potential lower targets are the $78.00 and $76.00 levels.
Natural gas chart analysis
Yesterday’s gas price formed a new two-week higher high at $6.70. After that, we see a pullback to the $6.40 level, where the gas price manages to hold and initiate a minor bullish impulse. For a bullish option, we need positive consolidation and a return to yesterday’s high. After that, we need to break above this level and try to stay up there.
With the new bullish impulse, we could see a further continuation of the natural gas price recovery. Potential higher targets are the $6.80 and $7.00 levels. For a bearish option, we need negative consolidation and a drop below this morning’s low. In the following, we will see further price pullback. Potential lower targets are the $6.20 and $6.00 levels.