Oil and Natural gas: Oil went to $83.00 level yesterday

Oil chart analysis

Yesterday, the oil price rose to $83.09, a new weekly high. After that, we stopped at that level and started pulling back to the $82.40 level. During the Asian session, we stayed in that range, and later in the EU session, we saw a breakout below and a drop below the $82.00 level. At $81.53, the price formed a daily low. It is under some pressure as we are now below the EMA50 moving average.

That could only add to the bearish momentum and send oil down to new daily lows. Potential lower targets are $81.40 and $81.20 levels. We need a positive consolidation and a return to $82.00 and the EMA50 for a bullish option. After that, we return to the bullish side, and it will be easier for us to initiate further recovery. Potential higher targets are $82.20 and $82.40 levels.

Natural gas chart analysis

The price of natural gas remains under pressure below the $1.75 level. During this morning’s Asian session, we saw the beginning of a bearish consolidation, a pullback below $1.73, and the EMA200 moving average. The price was under greater bearish pressure in the EU session and fell to the $1.70 level. With a new daily low, there is a higher chance of seeing a continuation on the bearish side. 

Potential lower targets are the $1.69 and $1.68 levels. We need a positive consolidation and a return above $1.73 and the EMA200 for a bullish option. This brings us back to the positive side, and we have a good position to continue the recovery above the $1.75 level. Potential higher targets are the $1.76 and $1.77 levels.

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