Oil and natural gas: Oil has an opportunity to recover
The oil price retreated on Thursday to a new weekly low of $66.95
The price of natural gas did not have enough strength yesterday to continue above the $2.90 level
Oil chart analysis
The oil price retreated on Thursday to a new weekly low of $66.95. Then in this morning’s Asian session, the price moved in the $67.00-$67.60 range. At the start of the EU session, oil gains momentum and rises to the $68.00 level. We need a break above if we want to see a further recovery to a new daily high. Potential higher targets are $68.50 and $69.00 levels. The price gets additional support in the EMA 50 moving average by crossing above the $68.50 level.
The EMA 200 moving average is waiting for us up in the $69.50 zone. For a bearish option, we need a negative price consolidation back to the $67.00 support zone. This time, we want to see a breakout below and the formation of a new weekly low. A bearish impulse would quickly provide us with that, and the price of oil would have to continue its retreat. Potential lower targets are the $66.50 and $66.00 levels.
Natural gas chart analysis
The price of natural gas did not have enough strength yesterday to continue above the $2.90 level. The loss of momentum caused the price to start retreating below the $2.85 level. With that step, we moved below the EMA 50 moving average, which put pressure on the price. This resulted in a drop to support at $2.75. During this morning’s Asian trading session, natural gas managed to stay at the $2.75 level.
In the EU session, we see an increase in bullish volume and a jump to the $2.79 level. The price is now above the daily open level and needs to hold there if it wants to return to the bullish side. Potential higher targets are $2.85 and $2.90 levels. For a bearish option, we need momentum below this morning’s support zone. This moves us to a new daily low and confirms that the price is under bearish pressure to continue its decline. Potential lower targets are $2.70 and $2.65 levels.
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