Oil and natural gas: Oil rose to the $83.00 level yesterday
- Yesterday, the price of oil rose to $83.09, a new weekly high.
- The natural gas price remains under pressure below the $1.75 level.
Oil chart analysis
Yesterday, the price of oil rose to $83.09, a new weekly high. After that, we stopped at that level and started to pull back towards the $82.40 level. During the Asian session, we stayed in that range and later in the EU session, we saw a breakout and drop below the $82.00 level. At $81.53, the price formed a daily low. It is under some pressure as we are now below the EMA50 moving average.
That could only increase bearish momentum and send oil tumbling to new daily lows. The possible lower targets are the $81.40 and $81.20 levels. We need positive consolidation and a return to $82.00 and the EMA50 for a bullish option. After that, we return to the bullish side and it will be easier for us to start a further recovery. The highest potential targets are the $82.20 and $82.40 levels.
Analysis of natural gas charts.
The natural gas price remains under pressure below the $1.75 level. During the Asian session this morning, we saw the beginning of a bearish consolidation, a pullback below $1.73 and the EMA200 moving average. The price came under further bearish pressure in the EU session and fell to the $1.70 level. With a new daily low, there is a higher probability of seeing a continuation on the bearish side.
The possible lower targets are the $1.69 and $1.68 levels. We need positive consolidation and performance above $1.73 and the EMA200 for a bullish call. This brings us back to the positive side and we are in a good position to continue the recovery above the $1.75 level. The possible highest targets are the $1.76 and $1.77 levels.
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