- Since the previous analysis on Wednesday, the price of oil has continued to grow, forming a new high last night at $76.53.
- The price of natural gas fell to a new multi-year low of $1,925.
Oil chart analysis
Since the previous analysis on Wednesday, the price of oil has continued to grow, forming a new high last night at $76.53. During the Asian trading session, we saw a slight pullback to the support level of $76.00. At the beginning of the trading session in the European Union, the price of oil took an upward push and rose to the level of $76.35. Now, we are once again on our way to testing the previous high.
Oil prices have strong momentum, and we expect to see a breakout and rise to a new weekly high. Possible higher targets are the $77.00 and $77.50 levels. For the bearish option, we need negative consolidation and a drop below the $76.00 support level. This would first mark a new daily low. The price will be under pressure to look for support at a lower level. Possible lower targets are the $75.50 and $75.00 levels.
Natural gas chart analysis
The price of natural gas fell to a new multi-year low of $1,925. On Wednesday we saw an attempt to keep the price above $2.10, but there was a break down and a continuation of the decline. Yesterday, the decline continued below the $2.00 level, and today it fell below the $1.95 level. There is a high chance that we will continue to drop to the $1.90 level.
We need to get back to the $2.00 level to get a bullish option. In this way, the price will move away from the critical bearish zone. We will have a chance to form a bottom at this level. After that, we will enter a recovery phase with bullish consolidation, and possible higher targets are the $2.05 and $2.10 levels. That would be a good precursor to further recovery next week.
