Oil and natural gas: The price of oil is testing $77.00
- On Friday, the oil price tested the $75.00 level.
- During the Asian trading session, the price of natural gas fell to a new low at the $2.25 level.
Oil chart analysis
On Friday, the oil price tested the $75.00 level. It managed to get support at that level, and a pullback above the $76.00 level followed. During the Asian trading session, the price is climbing to the $77.00 level, where we have resistance for now. Oil is now trading at the $76.80 level. For a bullish option, we need a jump to the $78.00 level and then try to hold on there.
If we succeed in this, we will have a good starting position for a new bullish impulse and price recovery. Potential higher targets are the $79.00 and $80.00 levels. A negative consolidation and a fall to the $76.00 level are needed for a bearish option. This would bring us closer to the previous low, which could increase the bearish pressure. Potential lower targets are the $75.00 and $74.00 levels.
Natural gas chart analysis
During the Asian trading session, the price of natural gas fell to a new low at the $2.25 level. From that moment, the price stabilized and started a recovery. We are now at the $2.32 level, and we could expect the gas price to increase to $2.35. If we succeed in that, we will reach the previous resistance zone from last Friday.
A break above would be a good sign that we could see stronger bullish momentum and price recovery. Potential higher targets are the $2.40 and $2.50 levels. If the bearish pressure continues, the price could slip again to this morning’s support at $2.25. A break below would lead to the formation of a new low, and we would continue the bearish trend. A potential intermediate lower target is the $2.20 level.
