Oil and natural gas: Oil under pressure below $72.50

Oil chart analysis

The oil price managed to break above the $75.00 level on Friday, forming this month’s high at the $75.21 level. The growth was stopped at that level, and the price quickly began to retreat until the $72.50 level. During the Asian trading session, the oil price failed to initiate a recovery, moving in the $72.00-$72.75 range. Additional pressure in this zone creates the EMA50 moving average, which could negatively affect oil and send it to lower levels.

Potential lower targets are $71.50 and $71.00 levels. We need a positive consolidation and a return above the $73.00 level for a bullish option. We would then need to hold in that zone before continuing further to the bullish side. Potential higher targets are $73.50 and $74.00 levels.

Natural gas chart analysis

The price of natural gas fell last night at the stock market opening from $3.00 to $2.80. After that, during the Asian session, we saw movement in the $2.85-$2.90 range. The price is recovering slightly with the support of the EMA50 moving average, and for now, we are holding above it, expecting to see a continuation to the bullish side. That could bring the price back up to $3.00, where we would try to hold on and erase this morning’s swing. Potential higher targets are $3.10 and $3.20 levels.

We need a negative consolidation and pullback below the EMA50 moving average for a bearish option. Thus, the price of natural gas would be under great pressure to continue its further decline, looking for support at previous lower levels. Potential lower targets are $2.70 and $2.60 levels.

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