Oil and natural gas: the price of oil pauses at $88.00
- During the Asian trading session, the oil price hovered around the $87.50 level.
- The price of natural gas continued to retreat during the Asian session, forming a new low at the $3.05 level.
Oil chart analysis
During the Asian trading session, the oil price hovered around the $87.50 level. Today’s high price was at $87.94, while the movement is in the range of $87.00-$88.00. The $87.00 level manages to provide us with support for now, but we cannot rule out a potential breakout below and the formation of a new weekly low. Potential lower targets are $86.50 and $86.00 levels.
Additional support for the price in the zone around $86.00 was provided by the EMA50 moving average. We already got his support in the previous pullback. We need a positive consolidation and price breakout above the $88.00 resistance level for a bullish option. Then, we would have to hold on there and start with a new impulse in the further recovery of the price. Potential higher targets are $88.50 and $89.00 levels.
Natural gas chart analysis
The price of natural gas continued to retreat during the Asian session, forming a new low at the $3.05 level. We have also fallen below the EMA50 moving average, which increases the bearish pressure on gas prices. Based on that, we could expect to see a continuation of the pullback and the formation of a new lower low. Potential lower targets are the $3.00 and $2.95 levels.
We need a positive consolidation and a move above the $3.10 level for a bullish option. Thus, we would also receive the support of the EMA50 moving average, which would be positively evaluated for the future movement of the price of natural gas. Potential higher targets are $3.15 and $3.20 levels.
