Oil and Natural Gas: The Price of Oil Hovered At $85.50
- During the Asian trading session, the price of oil hovered around the $85.50 level.
- During the Asian trading session, the price of natural gas moved in the range of $5.40-$5.60.
Oil chart analysis
During the Asian trading session, the price of oil hovered around the $85.50 level. The pressure on the price seems too much, and the price made a break below, and we are now testing the $85.00 level of support. Since the beginning of the week, oil prices have fallen by $9, representing 9.7%. For a bearish option, we need a continuation of the negative consolidation.
The first next level of support is at the $84.00 level, and if we fail to hold there, we will see a new breakout below and a further drop in the price of oil. Potential lower targets are the $83.00 and $82.00 levels. For a bullish option, we need a new positive consolidation and a return above the $86.00 level. With this, the price would form a new higher low from which the next bullish impulse could occur. Potential higher targets are the $88.00 and $90.00 levels.
Natural gas chart analysis
During the Asian trading session, the price of natural gas moved in the range of $5.40-$5.60. For now, the price drop has stopped at $5.40, but the price is still under pressure. Based on that, we could expect a further drop in the price of natural gas. For a bearish option, we need a negative consolidation and a break below the $5.40 level.
Then we need to stay there, which would lead to a further drop in the price of gas. Potential lower targets are the $5.20 and $5.00 levels. For a bullish option, we need a new positive consolidation and a return of the price above the $5.60 level. Then we need to climb up to the $5.80 level in order to get back above the previous trend line. Potential higher targets are the $6.00 and $6.20 levels.
