Exploring the Price of Oil: From $80.82 to $79.75 Today
- On Friday, we saw a jump in the price of oil to the $80.82 level.
- The price of natural gas at the beginning of the market opening this morning made a bullish gap from $1.80 to $1.88.
Oil chart analysis
On Friday, we saw a jump in the price of oil to the $80.82 level. The entire previous week was very bullish for the price of oil, which resulted in a jump to a new high on Friday. After that, we saw a pullback to the $79.75 level, and the market closed at that price. During the Asian session, the price managed to maintain above $79.75 and formed a daily high at the $80.38 level. For now, we stop there and turn towards the support level.
With a break below, we go to a new daily low and thereby get confirmation of bearish momentum. Potential lower targets are $79.50 and $79.00 levels. The EMA200 moving average is in the zone around $78.25 levels. If we get the required support and get back above the $80.00 level, then we can start a bullish consolidation. Potential higher targets are $80.50 and $81.00 levels.
Natural gas chart analysis
The price of natural gas at the beginning of the market opening this morning made a bullish gap from $1.80 to $1.88. After that, during the Asian trading session, the price made a pullback to the $1.84 level. This trend continues in the EU session, and we expect to see further price pullback. It is possible that we will see the closure of the gap and the return of natural gas prices to the $1.80 level. Additional support in that zone is the EMA200 moving average.
If we get his support, we will see a new positive consolidation. After which we expect to come back and test the daily high. Potential higher targets are $1.90 and $1.92 levels. We need a drop from the EMA200 and the $1.80 support level for a bearish option. A pullback below increases the pressure on the price to go even lower. Potential lower targets are $1.78 and $1.76 levels.
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