Oil and Natural Gas: The oil is recovering above $75.00
- Yesterday’s drop in oil prices stopped at the $72.25 level.
- The price of gas during the Asian trading session manages to maintain the $2.50 level.
Oil chart analysis
Yesterday’s drop in oil prices stopped at the $72.25 level. This was followed by a quick pullback above the $74.00 level. During the Asian trading session, the price continues to recover, breaking above the $75.00 level. We are now at the $75.85 level and very close to testing and possibly breaking above the $76.00 level. If we succeed in that intention, then we need to maintain ourselves up there and continue the recovery with positive consolidation. Potential higher targets are the $77.00 and $78.00 levels.
We need a negative consolidation and a drop to the $75.00 level for a bearish option first. A break below would take us back to the previous $73.00-$74.00 support zone. If we don’t manage to hold on there either, we move down to the zone around the $70.00 level.
Natural gas chart analysis
The price of gas during the Asian trading session manages to maintain the $2.50 level. The pressure on gas prices is still evident but lower than in the previous period. Since the beginning of the week, we have been moving in the $2.45-$2.60 range. It is impossible to assess the potential short-term trend as the movement is limited.
For a bullish option, we need positive consolidation and price growth to the $2.70 level. This would form a new high for this week, which could push the price to the next $2.80 level. We need negative consolidation and pressure on the $2.45 support level for a bearish option. Potential lower targets are the $2.40 and $2.30 levels.
