- On Monday we saw oil prices fall to the $75.81 support level.
- This week could be a turning point for the price of natural gas.
Oil chart analysis
On Monday we saw oil prices fall to the $75.81 support level. In that area, we were able to form a bottom and start a bullish consolidation, rising to the $78.00 level. We encountered resistance at this level yesterday and saw a pullback to the $77.15 level. At that point, we encountered the 200 EMA, and with its support, we began a new bullish consolidation all the way up to $78.94, where we formed a new weekly high.
During the previous Asian trading session, oil fell against the strong dollar, down from $77.75. For now, we hold just below $78.00 and wait for news on US GDP at the beginning of the US session. We need a push above $78.50 to get back and climb above the Asian high. Next, we must keep ourselves there if we plan to test the weekly high and continue higher. Possible higher targets are the $79.00 and $79.50 levels.
Natural gas chart analysis
This week could be a turning point for the price of natural gas. When the market opened on Monday, we saw a bullish gap from $1.64 to $1.74. After that, the price was able to hold in that area and formed a daily high at $1.78. We encountered resistance in that area and fell below the $1.75 and EMA200 moving averages. The price turned bearish again but successfully stopped at the support level at $1.67.
On Tuesday, we found new support in that area, producing an upward push and a return above the 200 EMA and the $1.75 level. With these steps, we reached a new weekly high at $1.79, approaching $1.80. During this morning's Asian session, natural gas prices fell from $1.78 to the $1.74 support level. We are now in a bullish consolidation and expect to see a new bullish wave with EMA200 support, crossing the $1.80 resistance level. Possible higher targets are the $1.82 and $1.84 levels.
