Oil and Natural Gas: Big Step

[PocketOption]

Oil and Natural Gas: Big Step

Oil and Natural Gas: Big Step

• During the Asian trading session, the price of oil retreated to support at the $86.50 level.


• The price of natural gas yesterday managed to make a big step from the $7.90 to $8.40 level.


• At a Friday meeting of EU energy ministers, it was suggested that each EU country implement strategies to reduce overall electricity consumption by at least 10 %, the Wall Street Journal writes.

Oil chart 

During the Asian trading session, the price of oil retreated to support at the $86.50 level and the MA200 moving average. This was followed by a bullish impulse that took us above $88.00. In the euro session, oil prices rose and exceeded yesterday’s maximum at $89.10. Our next stop is at the $90.00 level. A potential higher target is the $90.40 level, the September high. We need a new negative consolidation and a drop to the $88.00 level for a bearish option. A price break below would increase the bearish pressure, and our next target would be first $86.50, this morning’s low, and then $86.00, the support level. Potential lower targets are $85.00 and $84.00 levels.

Natural gas chart analysis

The price of natural gas yesterday managed to make a big step from the $7.90 to $8.40 level. During the Asian trading session until now, the gas price has been moving sideways around the $8.40 level. Above us is the MA200 moving average at $8.50, and we need a break above to continue to the $8.60 level. Then it would be preferable to stay up there because a new bullish impulse could follow. Potential higher targets are $8.80 and $9.00 levels. For the bearish option, we need a negative consolidation and a drop in the gas price to the $8.20 level. We would look for the next potential support at the $8.00 level, and if we fail to hold even there, we will go down towards the September support zone at the $7.80 level.

Market Overview

At a Friday meeting of EU energy ministers, it was suggested that each EU country implement strategies to reduce overall electricity consumption by at least 10 %, the Wall Street Journal writes.

Earlier this summer, the EU asked its members to reduce gas consumption by 15 % from this fall to winter. An emergency meeting of EU energy ministers was held on Friday to discuss consumer energy bills and capping the price of n natural gas. The meeting ended without a concrete plan.

The post Oil and Natural Gas: Big Step appeared first on FinanceBrokerage.

Source: Oil and Natural Gas: Big Step