- This week, oil prices rose to $78.52.
- Finally some positive developments on the natural gas chart.
Oil chart analysis
This week, oil prices rose to $78.52. On Monday and Tuesday, we tried several times to reach this level, but we always bounced lower. Yesterday, a more pronounced bearish move was made by falling below the $77.50 level, and a bottom was formed at the $76.80 level. The price stopped there and pulled back above the $77.00 level. During the Asian trading session this morning, oil was on the positive side, remaining above the $77.00 level.
With the beginning of the European Union session, instability comes on the oil chart; The price breaks the support level and drops to $76.29. Thus, we form a daily low and get confirmation of the downward momentum. The EMA200 moving average creates additional pressure; We failed to stand above its line and fell below it. Possible lower targets are the $76.00 and $75.50 levels.
Natural gas chart analysis
Finally some positive developments on the natural gas chart. Monday and Tuesday were quiet, and the price moved in the $1.58-1.64 range. At the opening of the Asian session this morning, the price took an upward wave from $1.62 to $1.74.
After that, it manages to stay high in the resistance area; In the EU session, we see a breakout to the upside and a jump to the $1.78 level.
Here, we are testing the 200 EMA and hope for a positive result and a move above the $1.80 level. Possible higher targets are the $1.85 and $1.90 levels. A price pullback below the EMA200 and $1.76 level is required for a bearish option. We will be under strong pressure here because we have been in a downtrend for so long.
A pullback below the $1.70 level is the first sign of renewed weakness in natural gas prices. Possible entry points are the $1.65 and $1.60 levels.
