Oil and natural gas: the price of oil slips below $76.50
- Last night, the oil price dropped to a new weekly low of $76.40.
- The price of natural gas formed a multi-month high on Thursday at the $2.86 level.
Oil chart analysis
Last night, the oil price dropped to a new weekly low of $76.40. During this morning’s Asian trading session, we slightly recovered to the $77.00 level. With the start of the EU session, the price is under pressure again and takes a step down to $76.75. This could trigger a stronger bearish impulse and send us to a new lower low. Potential lower targets are $76.50 and $76.00 levels.
We need a positive consolidation above the $77.00 level for a bullish option. Then we need to hold there and form a new bottom. If we succeed, we will have a new opportunity to start the recovery on the bullish side. Potential higher targets are $77.50 and $78.00 levels. In the $77.50 zone, we will have additional resistance in the EMA50 moving average.
Natural gas chart analysis
The price of natural gas formed a multi-month high on Thursday at the $2.86 level. We stop at that level and make a pullback until the end of the day at the $2.60 level. During this morning’s Asian trading session, the price managed to stay there and recover slightly to the $2.65 level. In this zone, we encounter the EMA50 moving average, which, for now, represents an obstacle for us. We need a new impulse above to $2.70 to break the EMA50.
If that picture turns out to be correct, we could expect the price of natural gas to continue the previous bullish trend. Potential higher targets are $2.75 and $2.80 levels. We need a new test of the $2.60 support level for a bearish option. Returning to that zone would exert additional pressure and we would see a drop to a new low. Potential lower targets are $2.55 and $2.50 levels.
