Oil and natural gas: Natural gas fell below $1.70 level

Oil chart analysis

The oil price is in an upward trend after we saw a drop to the $76.76 level on Monday. There, we formed a weekly low and started a bullish consolidation from that level. That brings us back to the $78.00 level and we have mostly moved in that zone for the past two days. We have additional pressure in the EMA200 moving average, and we must skip it if we plan to start a further recovery.

Potential higher targets are the $79.00 and $79.20 levels. We need a price pullback below $78.20 and the EMA200 for a bearish option. After that, we go back to testing the $78.00 level. The price of oil will again be under pressure in the support zone, which could lead to a drop to a new low. Potential lower targets are the $77.50 and $77.00 levels.

Natural gas chart analysis

The price of natural gas continues to fall since the beginning of this week. Yesterday, we encountered resistance at the $1.80 level, which was followed by a strong pullback to the $1.67 level. Then, during the Asian trading session, the price consistently held below the $1.70 level. Remaining under pressure in the EU session, natural gas slid even lower, forming a new weekly low at $1.65.

Potential lower targets if the bearish trend continues are the $1.64 and $1.63 levels. We need a positive consolidation and a return to the 1.70 resistance level for a bullish option. Then, we would have to move above and try to hold it up there. If we succeed, we will have a new opportunity to start a new positive consolidation and continue on the bullish side. Potential higher targets are $1.72 and $1.74 levels.

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