Oil and natural gas: The oil is moving above $74.00
- The oil price drop was stopped yesterday at the $72.70 level.
- The gas price is still under much pressure at the $4.00 level.
Oil chart analysis
The oil price drop was stopped yesterday at the $72.70 level. Since then, we have seen a bullish recovery. During the Asian trading session, oil price continued their recovery and climbed above the $74.00 level. If this trend continues, we could soon retest the $75.00 level. For a bullish option, we need positive consolidation and a move above the $75.00 level. Then we need to try to stay above. With the next bullish impulse, we could continue the recovery.
Potential higher targets are the $76.00 and $77.00 levels. For a bearish option, we need a negative consolidation and a drop to the $73.00 support level. A break below and the formation of a new lower low would mean the continuation of the bearish trend and the weakening of the oil price. Potential lower targets are the $72.00 and $70.00 levels.
Natural gas chart analysis
The gas price is still under much pressure at the $4.00 level. Yesterday’s attempt to start a recovery was stopped at the $4.25 level. After which, we see a price pullback below the $4.20 level. We could meet again at $4.00 and look for new support. If there is a breakthrough below, the price will form a new low this year. And the potential lower targets are the $3.80 and $3.60 levels.
For a bullish option, we need a positive consolidation and a jump to the $4.40 level. Then we need to hold on up there in order to start a further price recovery with a new bullish impulse. Potential higher targets are the $4.60 and $4.80 levels.