Oil and Natural Gas: Oil advances above $86.00 level

The price of oil spent the first part of this week in the $85.00-$87.00 range, and yesterday, we saw a drop to the $82.30 level. The price of natural gas has been retreating in the past two days from the $3.38 level.

Oil Analysis Chart

The price of oil spent the first part of this week in the $85.00-$87.00 range, and yesterday, we saw a drop to the $82.30 level. With this retreat, the price of oil closed the gap created at the market opening on Monday morning. During the previous Asian trading session, we saw a bullish consolidation and continued oil price recovery to the $86.00 level. We are now very close to testing the previous resistance at the $87.00 level.

We broke above the EMA50 moving average at $ 85.00 and now have its support. Potential higher targets are $88.00 and $89.00 levels. We need a negative consolidation and a new pullback to the support zone around the $82.00 level for a bearish option. A break below would lead to the formation of this week’s new low and thus increase the bearish pressure on the price of oil. Potential lower targets are $81.00 and $80.00 levels.

Natural Gas Chart Analysis

The price of natural gas has been retreating in the past two days from the $3.38 level. On Wednesday, we saw the first bearish impulse up to the $3.11 level, but very quickly, we got support at that level, and we returned above the $3.20 level. Then, we once again tried to break the resistance zone above $3.30; it ended unsuccessfully, and the price started to pull back. During the Asian session, NATGAS continued the bearish trend, descending to the $3.16 level.

It is possible that we will see a continuation of the pullback to the $3.10 level, where the EMA50 moving average awaits us as a potential support. A break below would mean that the price has no strength to recover, and we will see a continuation of the pullback to the bearish side. Potential lower targets are $3.05 and $3.00 levels.

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