Oil and Natural Gas: Oil is back above the $70.00 level

The oil price has returned above the $70.00 level after pulling back earlier in the week. 
Yesterday we saw the gas price pull back to the $2.00 level. 

Oil chart analysis

The oil price has returned above the $70.00 level after pulling back earlier in the week. During the Asian trading session, the price started a bullish consolidation and crossed above the $71.00 level. We are now on our way to $71.50 and could test that level soon. A break above would mean a potential further continuation to the bullish side.

Potential higher targets are the $72.00 and $73.00 levels. We need a negative consolidation and pullback to the $70.00 support level for a bearish option. If we slip below, the potential lower targets are the $69.00 and $68.00 levels, as well as this week’s low at the $67.00 level.

Natural gas chart analysis

Yesterday we saw the gas price pull back to the $2.00 level. During the Asian trading session, the gas price did not recover much, and the current price is $2.05. Based on today’s consolidation, we could expect to see continued price recovery. Potential higher targets are the $2.10 and $2.15 levels.

In the zone around the $2.15 level, we encounter the EMA50 moving average, which could increase the bearish pressure and send us down again. On the bearish side, potential lower targets are the $1.95 and $1.90 levels.

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