Oil and Natural Gas: Oil retreats from the $80.00 level
After establishing a weekly low at $76.86 on Wednesday, the oil price has been in a bullish consolidation.
During this morning’s Asian trading session, the price of natural gas rose to the $2.19 level.
Oil chart analysis
After establishing a weekly low at $76.86 on Wednesday, the oil price has been in a bullish consolidation. This trend was bolstered yesterday when we observed the price receiving support from the EMA50 moving average, a key technical indicator.
In today’s trading session, the price has continued to rise, surpassing the EMA200 moving average and $79.75. In the previous hour, we reached $ 79.93, forming a new weekly high. The potential higher targets to keep an eye on are the $80.00 and $80.50 levels.
To consider a bearish option, we would need to see a new negative consolidation and a pullback below the EMA200 and $79.50 level. This would signal a shift in the market sentiment and potentially lead to a new daily low, confirming the bearish presence.
In such a scenario, oil prices would likely be compelled to pull back and test lower support levels. The potential lower targets to monitor are the $79.00 and $78.50 levels.
Natural gas chart analysis
During this morning’s Asian trading session, the price of natural gas rose to the $2.19 level. There, we formed a new weekly high, and now we are looking at a slight pullback to the $2.16 level.
We expect to see a crucial test of the daily open price at the $2.15 level, which serves as a key support level and can significantly influence the market sentiment. If we were to move below, the price of natural gas would move to the negative side and would be under pressure to continue its retreat.
Potential lower targets are $2.10 and $2.05 levels. It’s important to note that we get additional support in the EMA50 moving average at the $2.10 level, which can help traders set realistic expectations.
For a bullish option, we need a new positive consolidation and a visit to this morning’s high at $2.19. With that step, we are approaching the $2.20 level, and with a new impulse, we will climb to a new high. Potential higher targets are $2.25 and $2.30 levels.
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