Oil and Natural gas: Oil could return to the $84.00 level
- In the previous two days, we watched the oil price pull back from $86.00 to $84.40.
- Last night we had some increased volatility in the price of natural gas.
Oil chart analysis
In the previous two days, we watched the oil price pull back from $86.00 to $84.40. During this morning’s Asian trading session, the price tried to move above $85.40, but it did not have enough strength for such a move, and we saw a pullback to a new daily low. By the end of the day, we may see a continuation and new testing of the weekly low at the $84.00 level.
Potential lower targets are $83.80 and $83.60 levels. If the price of oil returns above the $85.25 level, it will have a new opportunity to jump to a new daily high with a bullish impulse.
With this, we skip the EMA50 and EMA200 moving averages, as well as the weekly open price. Returning to the positive side will be much easier for us to stabilize there and start a further recovery on the bullish side. Potential higher targets are $86.00 and $86.50 levels.
Natural gas chart analysis
Last night we had some increased volatility in the price of natural gas. First, we saw a drop to the $1.60 level and then, in the next hour, a strong bullish impulse to the $1.75 level.
We stayed up for a short time because there was a pullback and a return down to the $1.63 level. There were no significant changes on the chart during the Asian trading session. The price is now moving in the $1.63-$1.65 range.
The current pressure is at the bottom level, and a drop below a new daily low could occur. Potential lower targets are $1.62 and $1.61 levels.
If we stay above this support level, we need an impulse above the $1.65 resistance level. Next, we need to maintain ourselves up there in order to start a new positive consolidation from there. Potential higher targets at $1.66 and $1.67 levels.
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