Oil and natural gas: Oil recovered this morning to $83.50
Yesterday we saw a bullish consolidation of oil prices from $81.00 to $83.50 levels. Since the beginning of the week, the price of natural gas has been in a bullish trend.Oil chart analysis
Yesterday we saw a bullish consolidation of oil prices from $81.00 to $83.50 levels. With that, we returned above the EMA200 moving average, and this morning, we formed a new weekly high at the $83.67 level. After that, we stop there and the oil price begins to retreat. A quick bearish impulse pushes us below the $83.00 level while we get the first support at the $82.80 level. It is possible that we will see a continuation of the price decline to a better support level.
Potential lower targets are $82.50 and 82.004 levels. We are testing the weekly open price at $82.00, and it is important for us to stay above it on the positive side. We need a return above the $83.50 level for a bullish option and the EMA200 moving average. This puts us in a better position to start a bullish consolidation. Potential higher targets are $84.00 and $84.50 levels.
Natural gas chart analysis
Since the beginning of the week, the price of natural gas has been in a bullish trend. Last night, we saw a jump to a new weekly high at $1.89. During the Asian trading session, the price started a slight pullback, which continued in the EU session to the $1.87 level. If this trend continues, it is possible that we will slide lower in search of a new support level. Potential lower targets are $1.86 and $1.85 levels.
We need a positive consolidation and a return up to the $1.89 level for a bullish option. A new test of that zone could produce an impulse above and move us to a new weekly high. Potential higher targets are $1.90 and $1.91 levels.
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