Oil and natural gas: The price of oil continues to recover
- During the Asian session, oil recovered above the $78.00 level.
- The price of natural gas climbed to the $2.70 level and encountered resistance.
Oil chart analysis
During the Asian session, oil recovered above the $78.00 level. We are currently at $78.75, and with this positive consolidation, we could expect to climb to the $79.00 level. We were there the previous time on February 1. If we could manage to climb above and hold above, we would have another chance to reach the major resistance zone at $82.00.
We need a negative consolidation and a return below the $78.00 level for a bearish option. Thus we would form a new lower high and probably continue the pullback. We would look for support at $77.00, and if that level does not give us support, the price breaks below and continues toward the previous low from the beginning of the week.
Natural gas chart analysis
The price of natural gas climbed to the $2.70 level and encountered resistance. A new pullback followed and a retreat below the $2.60 level. During the Asian trading session, the gas price hovered around the $2.50 level, while now we see a breakout below and a continuation of the bearish consolidation.
A new lower low was formed at $2.43. If the current consolidation continues, the gas price will drop below $2.40, which would be the lowest in the previous 22 months. Potential lower targets are the $2.30 and $2.20 levels. For a bullish option, we need a new move above the previous high at $2.70. After that, we could expect to see further recovery in gas prices.
