- During the Asian session this morning, the oil price continued its sideways consolidation in the $70.00-$70.70 range.
- The price of natural gas continued to move in the support zone on Friday, October 18.
Oil chart analysis
During the Asian session this morning, the oil price continued its sideways consolidation in the $70.00-$70.70 range. The price continues to move in the support zone and below the 50 EMA. Oil remains under pressure, which could produce bearish momentum to a new daily low. This means a price drop back below the $70.00 level. The possible lower targets are the $69.50 and $69.00 levels.
If we manage to reach $71.00, with that step we will get the support of the 50 EMA moving average to continue towards the bullish side. We expect to see a further advance in oil with stronger bullish momentum to a new daily high. The highest potential targets are the $71.50 and $72.00 levels. The 200 EMA could be a big problem in the $72.00 area.
Analysis of natural gas charts.
The price of natural gas continued to move in the support zone on Friday, October 18. We are very close to breaking below the weekly low of $2.68. Increasing price pressure could trigger bearish momentum and thus form a new lower low. The possible lowest targets are $2.65 and $2.60.
For a bullish option, the natural gas price would first have to return above the $2.70 level. After seeing that, we expect bullish momentum above the $2.72 level. There we get support from the 200 EMA, which should further strengthen the bullish momentum for the continuation of the recovery. The possible highest targets are the $2.75 and $2.80 levels. The 50 EMA could represent resistance around the $2.80 level.
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