Oil and Natural gas: The price of oil slipped to $70.10
- The oil price started a new pullback yesterday after failing to hold above $73.00.
- The price of natural gas continues to retreat below the $2.08 level.
Oil chart analysis
The oil price started a new pullback yesterday after failing to hold above $73.00. Due to the increase of concerns since the beginning of the global recession, the price of crude oil is weakening. The bearish impulse quickly took us below the $72.00 level, forming a lower low at the $71.00 level.
During the Asian trading session, the price of oil continued to retreat, and we are now at the $70.25 level. We could test the $70.00 support level soon. If we fail to hold above, potential lower targets are the $69.00 and $68.00 levels. For a bullish option, we need a new positive consolidation and stabilization above $71.00. After that, we could expect the oil price to consolidate there and start the recovery with a new impulse.
Natural gas chart analysis
The price of natural gas continues to retreat below the $2.08 level. Yesterday’s attempt to get $2.20 was unsuccessful. A lower high was formed at the $2.16 level, from which the gas price began its previous pullback. Today’s low price is $2.06 level, and we manage to stay above it for now.
If this week’s consolidation continues, chances are high that the price will once again fall to the $2.00 support level. We need a positive consolidation and recovery above the $2.10 level for a bullish option. Then it is necessary for the price to be maintained up there and with a new consolidation to start a further recovery. Potential higher targets are the $2.12 and $2.14 levels.