Oil below $78.00 level today, Natural gas at the $2.09 level

Oil chart analysis

The oil price on Friday failed to reach the $80.00 level, and we saw a bearish consolidation up to the $78.10 level. During the Asian trading session, the pullback to support at $77.75 continued. We managed to hold above and initiate a bullish consolidation to the $78.50 level. We expect the price to continue its recovery to the EMA50 moving average and the $78.75 level. With the EMA50 support, we go above $79.00 and return to the bullish side.

Potential higher targets are $79.50 and $80.00 levels. In the $79.50 zone, we encountered the EMA200 moving average, which was a problem for us last week and an obstacle to the recovery of oil prices. For a bearish option, we need to go back to this morning’s support zone around the $78.00 level. New pressure in that zone would have a negative impact and we would see a pullback below to a new low. Potential lower targets are $77.50 and $77.00 levels.

Natural gas chart analysis

During the Asian trading session, the price of natural gas gained support at the $2.09 level. From there, a bullish consolidation and a move above the $2.12 level were initiated. After which we continued to grow up to the $2.16 level. We need to reach $2.18 in order to climb to the previous high.

Then, we need to hold there if we want to continue further towards the $2.20 price. Potential higher targets are the $2.22 and $2.24 levels.

We need a negative consolidation and a return to this morning’s support zone for a bearish option. With that step, we go down and test the EMA50 moving average. 

A bearish impulse could easily push us to a new daily low and thereby confirm the weakness of the price of natural gas. Potential lower targets are $2.08 and $2.06 levels.

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