Oil and natural gas: oil price in retreat below $77.00
On Wednesday, the oil price returned to a new May low of $76.86. The price of natural gas has been in a stable, bullish trend for more than a month.Oil chart analysis
On Wednesday, the oil price returned to a new May low of $76.86. On Monday and Tuesday, we saw consolidation above the $78.00 level. During this morning’s Asian session, there was a breakout below and a drop to a new low. We are holding above and recovering to the $77.50 level for now. It is possible that we will see a new test of the $78.00 level. We also have a weekly open price in that zone; we need to return above it.
By moving above, we return to the positive side, and after that, we can expect further bullish consolidation and recovery. Potential higher targets are $78.50 and $79.00 levels. The EMA200 moving average is up in the zone of the $80.00 level. For a bearish option, we need to test this morning’s low. The impulse below leads us to a new low and thus confirms the bearish continuation. Potential lower targets are $76.50 and $76.00 levels.
Natural gas chart analysis
The price of natural gas has been in a stable, bullish trend for more than a month. We formed a new weekly high at the $2.09 level on Monday. This was followed yesterday by consolidation and a pullback to support at the $2.00 level. We managed to get support there and start a bullish consolidation above the $2.09 level again. We are currently putting pressure on the weekly high and expect a jump to a new one.
Potential higher targets are $2.10 and $2.15 levels. We need a negative consolidation and pullback to the $2.00 level for a bearish option. This cuts the EMA50 moving average line and leans towards the $1.97 weekly open price. By falling below, we move to the negative side, and after that, we can expect a pullback to lower support. Potential lower targets are $1.95 and $1.90 levels.
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