Oil continues to rise on Monday; natural gas has stabilized
- The price of oil continued to rise during this morning’s Asian session.
- At the start of this morning’s Asian session, the price of natural gas made a bullish gap from $2.22 to $2.25.
Oil chart analysis
The price of oil continued to rise during this morning’s Asian session. We saw a jump to the $77.54 level, where we formed a seven-day high. The current stable bullish formation gives us confidence to continue on the bullish side. Based on this, we expect to see the price of oil at a new daily high. Potential higher targets are the $78.00 and $78.50 levels.
For a bearish option, we need the oil price to pull back below the weekly open level of $76.84. A move below this level could form a new daily low, potentially affecting the price movement and leading to new lower levels. However, being prepared for this scenario is also part of a comprehensive market strategy. At $76.30, we meet the EMA 50 moving average, which could slow further pullback. Potential lower targets are the $76.00 and $75.50 levels.
Natural gas chart analysis
At the start of this morning’s Asian session, the price of natural gas made a bullish gap from $2.22 to $2.25. This triggered a bullish consolidation and growth to a new August high of $2.30. For the eighth day in a row, the price is on a bullish trend, and there are good chances to see further recovery to higher levels. Potential higher targets are $2.35 and $2.40 levels.
For a bearish option, we need a negative consolidation of natural gas prices. A drop back to the daily open price is the first step for a bearish scenario. That would close this morning’s bullish gap. After that, the price is under pressure to create a new daily low. Additional pressure is made by the fact that we are then below the EMA 50 moving average. Potential lower targets are $2.15 and $2.10 levels. Great support for the price could be found in the EMA 200 moving average at the $2.12 level.
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