Oil and Natural Gas: The oil and resistance at $80.00
- During the Asian trading session, the price of oil fell to a seven-day low at the $76.80 level.
- Yesterday, the gas price fell to its nine-month low at $4.53.
Oil chart analysis
During the Asian trading session, the price of oil fell to a seven-day low at the $76.80 level. The current price recovery has moved us to the $78.00 level, and we are now trying to hold here to stop further declines. We need to reach the $79.00 level for a more concrete bullish scenario. If the oil price breaks above and stays above, it would greatly benefit us.
Potential higher targets are the $80.00 and $81.00 levels. We need a negative consolidation and a drop below this morning’s support level for a bearish option. Below, potential lower targets are $76.00 and $75.00.
Natural gas chart analysis
Yesterday, the gas price fell to its nine-month low at $4.53. After that, we see a bullish consolidation and recovery above the $4.80 level. Continuing this consolidation, we could climb up to the $5.00 level. Moving above gas prices would erase the losses it had yesterday. A potential higher target is the $5.20 level, the previous high.
For a bearish option, we need a negative consolidation and another decline to support at the $4.50 level. Continued volatility could further push the price to the next support levels, $4.40 and $4.20.