Oil and Natural Gas: The Price of Oil is Back Below $85.00
- During the Asian trading session, oil prices tried to move above the $85.00 level.
- The price of gas yesterday found support at the $5.60 level.
Oil chart analysis
During the Asian trading session, oil prices tried to move above the $85.00 level. The pressure was too much, and a pullback below $84.00 followed. With that, we fell below yesterday’s low, and now we could expect to see a continuation of the pullback to the previous lower support zone. For something like that, we need the continuation of negative consolidation.
Potential lower targets are the $83.00 and $82.00 levels. For a bullish option, we need a positive consolidation and a return above the $85.00 level. After that, we need to stay up there and, with the next bullish impulse, start the continuation of the price recovery. Potential higher targets are the $86.00 and $88.00 levels.
Natural gas chart analysis
The price of gas yesterday found support at the $5.60 level. From that moment, we see a strong bullish impulse that moves the price to the $6.00 level. During the Asian trading session, the price consolidated around that level, only to be followed by a new bullish impulse, and now we are already at the $6.20 level. To continue the bullish option, we need to see further positive consolidation.
Potential higher targets are the $6.40 and $6.60 levels. For a bearish option, we need a new negative consolidation and a return to the previous support zone around the $6.00 level. Break below and staying below lead us to descend to lower support levels. Potential lower targets are $5.80 and $5.60, yesterday’s low.
