Oil and natural gas: pressure on oil rises on Monday
The price of oil continued to retreat in the Asian session below the $75.00 level On Friday, the price of natural gas fell again to a new low of $2.19Oil chart analysis
The price of oil continued to retreat in the Asian session below the $75.00 level. It is currently at $74.92 and on track to initiate a deeper pullback. Chances are increasing that we will see a test of Friday’s low at $74.52 today. New pressure on that level would lead to an increase in bearish momentum. Oil would then have to decline and create a new weekly low. Potential lower targets are $74.00 and $73.50 levels.
For a bullish option, we need a positive consolidation above the daily open price of $75.55. Then, the price should stabilize there to form a new bottom. After that, oil will be able to start a bullish impulse and a recovery on the bullish side. Potential higher targets are $76.00 and $76.50. In the $76.25 zone, we will meet the EMA 50 moving average, which could be a new support for further recovery.
Natural gas chart analysis
On Friday, the price of natural gas fell again to a new low of $2.19. With that step, we fell below the EMA 200 moving average and the weekly open price. During this morning’s Asian trading session, the price moved in the $2.19-$2.21 range. We are still under pressure from the 200 EMA, which could have a negative impact on the future movement. With one bearish impulse, we would easily fall to a new lower low and break through the previous one.
Potential lower targets are the $2.18 and $2.16 levels. For a bullish option, the price of natural gas must move above the moving average and the weekly open price. If he succeeds in this, we expect to see the initiation of a positive consolidation above the $2.22 level. If we hold there, the chance to continue above $2.24 and the EMA 50 moving average increases. Potential higher targets are the $2.26 and $2.28 levels.
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