Oil and Natural Gas: Oil is moving above the $84.00 level

Oil chart analysis

The price of oil remains stable on Friday, continuing the bullish trend. On Wednesday, we had a short-term pullback to $82.50, after which the price quickly found support at that level. Yesterday, there was a return above $83.00; today, it is above the $84.00 level. During this morning’s Asian session, oil held above $83.50, and now we have a bullish consolidation that could threaten this week’s high at the $84.38 level.

Potential higher targets are $84.50 and $85.00 levels. For a bearish option, we need a negative consolidation and descent to test the morning’s support at the $83.50 level. Additional support in that zone is the EMA50 moving average. Failure to hold there will lead to a move below to a new daily low. Potential lower targets are $83.00 and $82.50 levels.

Natural gas chart analysis

The price of natural gas continues today with a bearish trend. Last night, the price dropped to a new July low of $2.34. During this morning’s Asian trading session, the movement of natural gas took place in the $2.35-$2.39 range. A slight bullish hint would move the price above $2.40 and test the EMA50 moving average there.

By crossing above that obstacle, we get the support of the EMA50, and it will be easier for us to start a further recovery on the bullish side. Potential higher targets are the $2.45 and $2.50 levels. We need a drop to $2.34 from the previous low for the bearish option. New testing of that level will have a negative impact on the price. Potential lower targets are the $2.30 and $2.25 levels.

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