Oil and natural gas: Oil searches for support at $81.00
At the start of this week, we saw a smaller bearish gap in oil prices from $81.00 to $80.50. The price of natural gas on Friday encountered resistance and reached the zone around $1,740.Oil chart analysis
At the start of this week, we saw a smaller bearish gap in oil prices from $81.00 to $80.50. The price managed to hold above this low and initiate a bullish consolidation, returning above the $81.00 level. The current momentum is so strong that we are close to testing last week’s high at $81.58. Today’s high is at $81.44, and it could easily happen that we test the previous high by the end of the day.
Potential higher targets are $82.00 and $82.50 levels. We need a pullback below the $81.00 level for a bearish option. This brings us back below the Asian high price. We are also moving away from the bearish path, which adds to the negative pressure on oil. We then turned towards this morning’s low at the $80.50 level. Another test could lead to a slide below to a new daily low and thus confirm the bearish presence. Potential lower targets are $80.00 and $79.50 levels.
Natural gas chart analysis
The price of natural gas on Friday encountered resistance and reached the zone around $1,740. Pressure in that zone in the EMA200 caused the price to drop to $1.63 by the end of the day. During this morning’s Asian session, we saw a bullish consolidation from Friday’s low up to the $1.73 level. In the EU session, we continued this consolidation, and we are back at $1.74 and testing the EMA200 moving average.
We hope to see a breakout above and the price of natural gas at higher daily levels. Potential higher targets are $1.75 and $1.76. If we fail to move above, a new pullback will follow. We are again turning towards the previous support zone. Potential lower targets are $1.71 and $1.70. The EMA50 in the zone, around $1.70, could provide us with some support.
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