Oil and Natural Gas: New Highs and Targets for Friday
The increasing escalation in the Middle East has caused the price of oil to rise since the beginning of this week
The price of natural gas climbed to $3.10 on Thursday, a new weekly high
Oil chart analysis
The increasing escalation in the Middle East has caused the price of oil to rise since the beginning of this week. On Thursday, the price climbed to the $74.00 level. During this morning’s Asian trading session, oil was moving in the $73.50-$74.00 range. It could easily happen that we see a new bullish impulse and a move to a new October high. Potential higher targets are $74.50 and $76.00 levels.
For a bearish option, the oil price would have to retreat first to the $73.00 level. In this way, we would see the formation of a new daily low. This confirms we are moving away from the previous path and turning to the bearish side. After that, oil remains to go further down and look for new lower support. Potential lower targets are $72.00 and $71.00 levels. Additional support for the price is the EMA 50 moving average, which is in the $72.00 zone.
Natural gas chart analysis
The price of natural gas climbed to $3.10 on Thursday, a new weekly high. After that, we saw a slight pullback to new support at $3.05. In this morning’s Asian trading session, we see the initiation of a new bullish consolidation close to the weekly high. Everything indicates that the break above is close. Potential higher targets are $3.12 and $3.14 levels.
For a bearish option, we need a negative consolidation and a pullback of natural gas below $3.08 this morning’s support. Thus, we move to a new daily low and confirm the strengthening of bearish swings. In the $3.06 zone, we will try to test the EMA 50 moving average support. We have his support during this week. The inability to hold above will push the price of natural gas below to a new lower low. Potential lower targets are $3.04 and $3.02 levels.
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