Oil and Natural Gas: The Price of Oil Dropped to $84.00
- The price of oil dropped to $84.00 yesterday.
- During the Asian trading session, the gas price retreated from the $5.93 level.
Oil chart analysis
The price of oil dropped to $84.00 yesterday. There he finds new support and initiates a bullish impulse that manages to bring the price up to the $88.70 level at one point. A new pullback soon followed, and the price retreated to the $86.00 level. During the Asian trading session, the price of oil managed to maintain that level and moved up to the $87.00 level. For a bullish option, we need a positive consolidation that would take us back to the $88.00 level.
Then it is necessary to maintain up there and, with the next bullish impulse, start the continuation of the oil price recovery. Potential higher targets are the $89.00 and $90.00 levels. For a bearish option, we need a negative consolidation and pullback to yesterday’s $84.00 support level. A price break below could form a new lower low, which would signify the continuation of the oil price drop. Potential lower targets are the $83.00 and $82.00 levels.
Natural gas chart analysis
During the Asian trading session, the gas price retreated from the $5.93 level. We are now hovering around $5.80 and could see a drop to the $5.60 support level. Additional support at that level is in the lower support line. For a bearish option, we need a negative consolidation that leads to a break below the support line.
Such a move would reinforce the bearish picture. Potential lower targets are the $5.40 and $5.20 levels. For a bullish option, we need a positive consolidation and a return to the $6.00 resistance level. Then we need to move above and form a new bottom there, from which we would start a new bullish impulse. Potential higher targets are the $6.20 and $6.40 levels.
