Oil and natural gas: oil has a chance to recover
- The price of oil fell to a new weekly low of $66.95 on Thursday.
- The price of natural gas yesterday did not have enough strength to continue above the $2.90 level.
Oil chart analysis
The price of oil fell to a new weekly low of $66.95 on Thursday. Then, in the Asian session this morning, the price moved in the range of $67.00 to $67.60. At the beginning of the EU session, oil gains momentum and rises to the $68.00 level. We need a break above if we want to see a further recovery to a new daily high. The possible highest targets are the $68.50 and $69.00 levels. The price gains additional support at the 50 EMA by crossing above the $68.50 level.
The 200 EMA awaits us in the area of $69.50. For a bearish option, we need a negative price consolidation to the $67.00 support zone. This time we want to see a break below and the formation of a new weekly low. A bearish impulse would provide it quickly and the price of oil would have to continue to fall. The possible lower targets are the $66.50 and $66.00 levels.
Analysis of natural gas charts.
The price of natural gas yesterday did not have enough strength to continue above the $2.90 level. The loss of momentum caused the price to start retracing below the $2.85 level. With that step, we moved below the 50 EMA moving average, which put pressure on the price. This resulted in a drop to the $2.75 support. During the Asian session this morning, natural gas managed to hold at the $2.75 level.
In the EU session, we see an increase in bullish volume and a jump to the $2.79 level. The price is now above the daily opening level and must stay there if it wants to return to the bullish side. The possible highest targets are the $2.85 and $2.90 levels. For a bearish option, we need momentum below this morning's support zone. This takes us to a new daily low and confirms that the price is under downward pressure to continue its decline. The possible lower targets are the $2.70 and $2.65 levels.
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