Oil and Natural gas: Oil finds support at $72.50
This week’s withdrawal of oil was stopped yesterday at the $71.30 level.
Yesterday’s attempt by the price of natural gas to reach $2.20 was stopped at the $2.18 level.
Oil chart analysis
This week’s withdrawal of oil was stopped yesterday at the $71.30 level. From that moment, the price begins to recover and rises to $73.75. We encounter resistance at that level and see a pullback during the Asian session. The withdrawal continued in the EU session to the $72.40 level.
For now, oil manages to stay above that low and return to the $72.65 level. Looking at the EMA50 moving average, we see that this week the price of oil is moving around it. For a bullish option, we need a positive consolidation to reach the $74.00 level. If we manage to break above, the price could form a new weekly high. Potential higher targets are the $75.00 and $76.00 levels.
Natural gas chart analysis
Yesterday’s attempt by the price of natural gas to reach $2.20 was stopped at the $2.18 level. After that, we see a pullback and a negative consolidation. During the Asian session, the gas price managed to stay above the $2.14 level. We now see a breakout below and a potential bearish option continuation.
The first target is the $2.10 level of support, and additional support at that point is in the EMA50 moving average. A further break below the gas price would lead to a test of yesterday’s low at $2.08. Potential lower targets are the $2.06 and $2.00 levels. For a bullish option, we need a positive consolidation and a return of the price to the zone around the $2.20 level. Potential higher targets are the $2.22 and $2.24 levels.
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