Oil and Natural Gas: Oil is recovering above $74.00 level
- The oil price is successfully recovering after Wednesday’s pullback to the $70.59 level.
- The price of natural gas has been in a bearish trend this week.
Oil chart analysis
The oil price is successfully recovering after Wednesday’s pullback to the $70.59 level. Most of the oil price movement occurred yesterday around the $73.00 level. After the successful consolidation, we saw a bullish impulse and a jump to the $74.00 level. During the Asian trading session, we successfully stayed in the $73.80-$74.00 range. We are now looking at the initiation of a bullish impulse that is slowly breaking through the $74.00 level. In the following, we expect to see further growth in the price of oil and the formation of this week’s new high.
Potential higher targets are $74.50 and $75.00 levels. We need a negative consolidation and pullback to $73.50 for a bearish option. Thus, we would fall below this morning’s support level. Price would be under more pressure to continue with further pullbacks. Potential lower targets are $73.00 and $72.50 levels.
Natural gas chart analysis
The price of natural gas has been in a bearish trend this week. We are currently looking at the formation of this week’s low formation at the $2.66 level. We started the week at $3.00 and have been on a pullback ever since. Additional pressure is created by the EMA200 moving average, which in the previous days did not allow us to move above it. Based on this, we expect to see continued retreat and the price of natural gas to lower levels. Potential lower targets are $2.60 and 2.504 levels.
For a recovery, we need to consolidate above the $2.70 level first. Thus, the fall would be stopped, and we could start with positive consolidation to conquer higher levels. Potential higher targets are $2.75 and $2.80 levels. In the zone around $2.80, we encounter the EMA200 moving average again, and there, we expect a new higher resistance to further growth.
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