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Oil and Natural gas: The gas falls to the $2.50 level

  • The oil price dropped to $76.00 yesterday for the first time in three weeks. 
  • During the Asian trading session, the gas price falls to a new low this year of $2.55.

Oil chart analysis

The oil price dropped to $76.00 yesterday for the first time in three weeks. During the Asian trading session, the price of oil started to try to climb above $77.00, but we encountered resistance there. We now see a new pullback, a drop below $76.50, and we could soon retest yesterday’s $76.00 low. A break below could continue this negative consolidation and form a new lower low.

Potential lower targets are the $75.00 and $74.00 levels. We need a positive consolidation and a return to the $78.00 level for a bullish option first. Then we need to hold up there and continue towards the $79.00 previous resistance zone. If oil prices continue to rise, the potential higher targets are $80.00 and $82.00.

Oil chart analysis

Natural gas chart analysis

During the Asian trading session, the gas price falls to a new low this year of $2.55. The price manages to consolidate at $2.60 and stop this decline. For a bullish option, we need a positive consolidation and a minimum move toward $2.70. Thus, we would move one step away from the uncomfortable position and form a new higher low.

Then the price needs to stay up there and try a new impulse to trigger a continuation of the recovery. Potential higher targets are the $2.80 and $2.90 levels. We need a negative consolidation and a drop below the previous low for a bullish option. Potential lower support targets are the $2.50 and $2.40 levels.

Natural gas chart analysis

 



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