- Oil prices managed to break above $70.00 again last week, forming a new weekly high at $70.32.
- Natural gas price rose to $2.56 on Friday
Oil Chart Analysis
Oil price managed to break above $70.00 again last week, forming a new weekly high at $70.32. However, soon after, the price lost its bullish momentum and started to retreat below the $70.00 level. Strong bearish impulses pushed the price back to the support level of $68.50. During the Asian session this morning, the price held above the daily opening price of $68.65. With the start of the EU session, oil starts a bullish consolidation and jumps above the $69.00 level.
The price is close to $69.50, which will test the 200 EMA. The current momentum looks promising for a move above the moving average. With its support, optimism for a continuation on the bullish side is increasing. The higher potential targets are the $70.00 and $70.50 levels. For the bearish option, a drop in oil price below the daily opening price of $68.65 would mean a return to the bearish side. After that, we will see a decline and a test of lower levels on the chart.
Natural Gas Chart Analysis
Natural gas price rose to $2.56 on Friday. After that, there was another pullback to the support level of $2.47. We managed to hold above it this morning and climb back up to $2.50. Natural gas price is now back on the bullish side, supported by the EMA 50 moving average. We expect a continued recovery in the EU session and the formation of a new daily high.
Possible upper targets are the $2.52 and $2.54 levels. For a bearish option, the price would have to first retreat below the $2.47 support this morning. After that, natural gas will be on the downside and under pressure to enter a deeper decline. Possible lower targets are the $2.44 and $2.42 levels. The EMA 200 moving average is in the $2.40 area; there, we expect to find support or a slowdown in the pullback.
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