Oil and Natural Gas: The Price of Oil Was Above $90.00
- The price of oil was once again above the $90.00 level yesterday.
- Yesterday, the price of natural gas once again visited the $5.80 resistance level.
Oil chart analysis
The price of oil was once again above the $90.00 level yesterday. Oil fell during the Asian session as a U.S. interest rate hike pushed the dollar higher and raised concerns about a global recession, although worries about tight supply capped losses. We need positive consolidation and a return to the $90.00 level for a bullish option.
Then we need to stay there and try to break through. After that, we would have a good chance for continued recovery. Potential higher targets are the $91.00 and $92.00 levels. We need a negative consolidation and pullback to the $88.00 level for a bearish option. Then we could expect a continuation of the decline to the lower support line. Potential lower targets are the $86.00 and $85.00 levels.
Natural gas chart analysis
Yesterday, the price of natural gas once again visited the $5.80 resistance level. During the Asian trading session, the price made a new pullback to the $5.60 level. And now we can expect a continuation of today’s retreat. For a bearish option, we need a negative consolidation and a further decline to the $5.40 level.
Potential lower targets are the $5.20 and $5.00 levels. Additional price support on the downside is the lower support line. We need a positive consolidation and a return to the $5.80 resistance level for a bullish option. Then we need a break above that level, and then we would have a good chance of reaching the $6.00 level. Potential higher targets are the $6.20 and $6.40 levels.
Market overview
Market sentiment after yesterday’s Fed meeting is also having a negative impact in the short term. The market is also expecting an increase in demand from China in the hope that Beijing will ease its policies to fight the coronavirus. Chinese politicians pledged on Wednesday that economic growth remains a priority and that they will push for reforms.
