Oil and natural gas: the price of oil recovered this morning
- On Tuesday, we saw oil prices pull back to $76.40.
- The price of natural gas has been in retreat from $2.29 since Monday.
Oil chart analysis
On Tuesday, we saw oil prices pull back to $76.40. A new July low was formed at that level. The price managed to start a bullish consolidation from there and climb up to the $77.70 level. We expect to see a continuation to the bullish side from this level and form a new daily high. Potential higher targets are $78.00 and $78.50 levels.
By crossing above $78.00, the oil price receives the support of the EMA 50 moving average. His support will certainly mean for us further growth on the bullish side. The oil price would have to drop below the $77.00 level for a bearish option. This confirms the primacy of the bearish option. A pullback below the daily open price will strengthen the bearish momentum. After that, we expect the oil price to drop to a new low. Potential lower targets are $76.50 and $76.00 levels.
Natural gas chart analysis
The price of natural gas has been in retreat from $2.29 since Monday. On Tuesday, we saw a break below the $2.25 support level. This caused the price to slip below the $2.20 level last night. During this morning’s Asian trading session, the price of natural gas movement took place in the $2.15-$2.20 range. With the beginning of the EU session, the price turns completely to the bearish side. This led to a drop to $2.15 and a test of the weekly open price.
If this consolidation continues, the decline in the price of natural gas could continue. Potential lower targets are $2.10 and $2.05 levels. We need a positive consolidation and a move back up to $2.25 for a bullish option. This gives us support in the EMA 200 moving average. With increased optimism, we would initiate bullish consolidation and relieve bearish pressure. Potential higher targets are $2.30 and $2.35 levels.
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