Oil and natural gas: Oil is once again in a support zone
- Yesterday and today, we again watched the oil price retreat.
- On Wednesday evening, the price of natural gas fell to a new July low at the $2.04 level.
Oil chart analysis
Yesterday and today, we again watched the oil price retreat. During this morning’s Asian session, the price dropped to $80.50. After that, the movement slowed down in the $80.50-$81.00 range. It is possible that we will see a stronger impulse with the beginning of the EU session. If a breakout above oil prices occurs, it could trigger a bullish consolidation. We would get support from the EMA 50 moving average to continue to the bullish side.
Potential higher targets are the $81.50 and $82.00 levels. By rising to $82.00, oil gets new support, this time in the EMA 200 moving average. For a bearish option, we need negative consolidation and momentum below the $80.50 level. After that, we can expect a test of this week’s low at $80.22. If the bearish momentum strengthens, the price will have to look for new support lower. Potential lower targets are the $80.00 and $79.50 levels.
Natural gas chart analysis
On Wednesday evening, the price of natural gas fell to a new July low at the $2.04 level. After that, we saw a bullish attempt and recovery to the $2.16 level. The price encounters a new resistance in that zone and retreats to the $2.12 level. During this morning’s Asian trading session, movement took place around that level and the EMA 50 moving average. If we don’t see a boost soon, natural gas prices will be forced to retreat.
Potential lower targets are $2.10 and $2.08 levels. For a bullish option, we need an impulse of up to $2.16, which was the previous high. After that, the price needs to hold there and stabilize above the EMA 50 moving average. Potential higher targets are $2.18 and $2.20 levels. The EMA200 moving average expects us to be around $2.25.
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