Oil and natural gas: The price of oil retreats to $87.00

Oil chart analysis

The oil price is in a slight retreat from last week’s Friday high of $87.90. During the Asian trading session, the price retreated to support at the $87.00 level. For now, we have managed to stay at that level despite the current pressure. If the support does not hold, we will see a breakout below and the formation of this week’s new low. Potential lower targets are $86.50 and $86.00 levels.

We need positive consolidation and a return to the zone around the $88.00 level for a bullish option. A price break above would lead to the formation of a new high, and we could start a continuation of the bullish trend. Potential higher targets are $88.50 and $89.00 levels.

Natural gas chart analysis

During the Asian trading session, the price of natural gas was retreating from the $2.55 level. We got support at the $2.50 level, and for now, we managed to stay above that level. The price is still under pressure, which could lead to a breakout below and the formation of a new weekly low. Potential lower targets are $2.45 and $2.40 levels.

We need a positive consolidation and a move to the $2.55 level for a bullish option. Additional pressure in that zone is the EMA50 moving average. A price break above would be positive for the bearish option, and we would get support at the EMA50 moving average. Potential higher targets are $2.60 and $2.65 levels.

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