Oil and Natural gas: Oil continues to recover

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Oil and Natural gas: Oil continues to recover

Oil and natural gas: Oil continues to recover

• During the Asian trading session, oil price finds support at the $76.00 level.


• The price of gas fell to a new weekly low of $6.15 yesterday.

Oil chart analysis

During the Asian trading session, oil price finds support at the $76.00 level. A bullish impulse soon follows, pushing the price above the $77.00 level. Today’s high was at the $77.50 level, and with that, we put pressure on yesterday’s high. We need a break above the $78.00 level. Then it is necessary to maintain up there in order to start a bullish recovery with the next consolidation. Additional resistance in the zone around $78.00 is located in the upper trend line.

Potential higher targets if we move above are $79.00 and $80.00. For a bearish option, we need a negative consolidation and a retest of this morning’s support at the $76.00 level. A breakout of the oil price below could extend the price decline until the next support at the $75.00 level. Potential lower targets are the $74.00 and $73.00 levels.

Natural gas chart analysis

The gas price fell to a new weekly low of $6.15 yesterday. During the Asian trading session, we saw a recovery above the $6.20 level. The price is currently at the $6.30 level and could continue up to the $6.40 level. If we managed to reach that level, we would have good support for the continued recovery of gas prices.

We would have the next resistance at the $6.50 level, and by crossing above, we would have a chance to recover to the previous high at the $6.80 level. For a bearish option, we need a negative consolidation and a drop below the $6.10 level. Below we would be very close to the $6.00 level; if we break below, the price could make a deeper pullback. Potential lower targets are the $5.80 and $5.60 levels.

 

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