- The growing escalation in the Middle East has caused the price of oil to rise since the beginning of this week
- The price of natural gas rose this Thursday to $3.10, a new weekly high
Oil chart analysis
The growing escalation in the Middle East has caused the price of oil to rise since the beginning of this week. On Thursday, the price rose to the $74.00 level. During the Asian session this morning, oil was trading in the $73.50-$74.00 range. It could easily happen that we see new bullish momentum and a move towards a new October high. The highest potential targets are the $74.50 and $76.00 levels.
For a bearish option, the oil price would have to retrace to the $73.00 level first. In this way we would see the formation of a new daily low. This confirms that we are moving away from the previous path and turning towards the bearish side. After that, oil will continue to decline and look for new lower support. The possible lower targets are the $72.00 and $71.00 levels. Additional support for the price is the 50 EMA, which is located in the $72.00 area.
Analysis of natural gas charts.
The price of natural gas rose to $3.10 on Thursday, a new weekly high. After that, we saw a slight pullback to new support at $3.05. In the Asian session this morning we see the beginning of a new bullish consolidation near the weekly high. Everything indicates that the breakout above is near. The possible highest targets are the $3.12 and $3.14 levels.
For a bearish option, we need negative consolidation and a pullback of natural gas below the $3.08 support this morning. Therefore, we are approaching a new daily low and confirming the strengthening of bearish oscillations. In the $3.06 area, we will try to test the support of the 50 EMA moving average. We count on its support this week. Failure to stay above will push the price of natural gas to a new low. The possible lowest targets are the $3.04 and $3.02 levels.
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