Oil and Natural Gas: Oil is struggling to stay above $85.00

Oil chart analysis

Oil prices have been under pressure since the beginning of this week. Yesterday we saw the price struggling to move above $87.00 and the weekly open price. Increased pressure in that zone pushes us down to the $85.05 level. We can say that we are testing support at the $85.00 level here. An additional support for the price is the EMA200 moving average. During the Asian trading session, we successfully held above these levels and advanced to $85.50.

We now need to continue this positive consolidation to move above the $86.00 level. Potential higher targets are $86.50 and $87.00 levels. We need a negative consolidation and a drop in oil prices below the $85.00 level for a bearish option. We are close to testing the weekly low at the $84.66 level. Potential lower targets are $84.50 and $84.00 levels.

Natural gas chart analysis

Natural gas prices have been in a strong bullish consolidation since the beginning of this week. A bullish Monday pushed the price up to the $1.76 level. On Tuesday, we first saw consolidation in that zone, after which we continued to grow up to the $1.84 level. This is where we encounter the first resistance and make a pullback to $1.76. In this way, we retest that support zone from which we return again above the $1.82 level.

Today, we are climbing and testing the $1.84 weekly high again. The current price action tells us we could see a breakout above and a jump to new weekly levels. Potential higher targets are $1.86 and $1.88 levels. For a bearish option, we need a negative consolidation and pullback below the $1.80 support level this morning. With that, we go to a new daily low and move away from the previous bullish path.

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