Oil and natural gas: Oil falls below last week’s low

Oil chart analysis

During the Asian trading session, the oil price was in a bearish trend with the $82.00 level. In the previous hour, we dropped below last week’s low at $81.00, and a new lower low was formed at the $80.68 level. Now we are looking at the zone around $80.00 to get support there again like last time at the end of March. If we fail to do so, the oil price could drop below $80.00 for the first time in April.

Potential lower targets are $79.50 and $79.00 level. For a bullish option on oil prices, we need a positive consolidation and a return above $81.00. This brings us back above last week’s low. From there, it would be easier for us to initiate further positive consolidation and continue on the bullish side. At $82.00, we come across the EMA50, and moving above it will increase optimism for a continuation on the bullish side. Potential higher targets are $83.00 and $84.00 levels.

Natural gas chart analysis

The price of natural gas rose to $1.77 on Friday, reaching a weekly high. After that, until the end of the day and the market’s closing, the price stabilized at the $1.73 level. During this morning’s Asian trading session, we were under slight pressure up to $1.72. Here, we encounter the EMA50, hope for its support, and turn back to the bullish side. Potential higher targets are $1.74 and $1.76 levels.

We need a price drop below the EMA 50 and the $1.72 level for a bullish option. After that, we look at the $1.71 level because this is where we encounter the EMA200 moving average. With a drop below this level, the picture would drastically turn to the bearish side, forcing the price to look for a new support level. Potential lower targets are $1.70 and $1.69 levels.

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