Oil and Natural Gas: Are we Ready for Seven-Day Higher High?

[PocketOption]

Oil and Natural Gas: Are we Ready for Seven-Day Higher High?

Oil and Natural Gas: Are We Ready For Seven-Day Higher High?

• During the Asian trading session, oil prices continue to rise to $87.35. We currently have resistance, and the price is retreating to the $86.40 level.


• The price of natural gas confirmed support at the $6.20 level twice yesterday.

Oil analysis chart

During the Asian trading session, oil prices continue to rise to $87.35. We currently have resistance, and the price is retreating to the $86.40 level. A drop below $85.50 could signal a deeper pullback to lower support levels. The first potential level is $84.00. If that level doesn’t give us support either, the price could continue to retreat to the $82.00 level, the breaking point of the previous trend line. We need a new positive consolidation and a jump above this morning’s high for a bullish option. The first target is the $88.00 level; we were there the previous time on September 15. If we manage to stay there, the price would have a good chance to continue towards the $90.00 psychological level.

Natural gas chart analysis

The price of natural gas confirmed support at the $6.20 level twice yesterday. After that, we see a bullish impulse that pushes the gas price to the $6.80 level. Price is now consolidating near the upper line of this descending channel, and we need a break above for further recovery. If we succeed in that, the first target is $7.00, and thus we would form a new seven-day higher high. After that, we need to stay there and continue the bullish trend with a new bullish impulse. Potential higher targets are $7.20 and $7.40 levels. We need a negative consolidation and a price drop below the $6.60 level for a bearish option. Then we would approach the lower support zone. Potential lower targets are $6.40 and $6.20 levels.

Market Overview

The American Petroleum Institute reported an unexpected crude oil drawdown of 1.770 million barrels this week. According to API data, U.S. crude inventories have risen by roughly 21 million barrels so far this year, while U.S. strategic oil reserves have fallen by nearly eight times that amount.

The post Oil and Natural Gas: Are we Ready for Seven-Day Higher High? appeared first on FinanceBrokerage.

Source: Oil and Natural Gas: Are we Ready for Seven-Day Higher High?