- The price of oil spent the first part of this week in the $85.00-$87.00 range and yesterday we saw a drop to the $82.30 level.
- The price of natural gas has been retreating in the last two days from the $3.38 level.
Oil Analysis Chart
The price of oil spent the first part of this week in the $85.00-$87.00 range and yesterday we saw a drop to the $82.30 level. With this decline, the price of oil closed the gap created at the market opening on Monday morning. During the previous Asian session, we saw bullish consolidation and a continued recovery of the oil price towards the $86.00 level. We are now very close to testing the previous resistance at the $87.00 level.
We broke the EMA50 moving average at $85.00 and now have its support. The highest potential targets are the $88.00 and $89.00 levels. We need a negative consolidation and a fresh pullback to the support zone around the $82.00 level for a bearish option. A break below would lead to the formation of this week’s new low and therefore increase the bearish pressure on the oil price. The possible lower targets are the $81.00 and $80.00 levels.
Natural Gas Chart Analysis
The price of natural gas has been retreating in the last two days from the $3.38 level. On Wednesday we saw the first bearish momentum towards the $3.11 level, but we very quickly found support at that level and went back above the $3.20 level. Then, we once again try to break the resistance zone above $3.30; ended unsuccessfully and the price began to retreat. During the Asian session, NATGAS continued the downtrend, declining to the $3.16 level.
We may see a continuation of the pullback to the $3.10 level, where the EMA50 moving average awaits us as potential support. A break below would mean that the price has no strength to recover and we will see a continuation of the pullback towards the bearish side. The possible lower targets are the $3.05 and $3.00 levels.
ADDITIONAL VIDEO: Weekly summary of market news
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’,’504526293689977′);fbq(‘track’,’PageView’)
