Oil and Natural Gas: The price of oil is back above $83.00

Oil chart analysis

During this morning’s Asian trading session, the price of oil made a significant move, returning above the crucial $83.00 level. This is a key milestone, as the price climbed back above the weekly open price on Friday and would have to hold there if it wants to stay on the positive side. Positive news on the drawdown of crude oil inventories for the second week in a row is supporting the price to continue rising. Potential higher targets are $83.50 and $84.00 levels.

On the other hand, a downward impulse to the $82.50 level could open up a bearish option. This would shift the market dynamics to the negative side, potentially falling below the morning’s support zone. At around $82.40, we will test the EMA 200 moving average, which would need to provide support to prevent further pullback. In this scenario, potential lower targets are $82.00 and $81.50 levels.

Natural gas chart analysis

The price of natural gas broke above the previous support zone yesterday. The $2.30 level did not hold, and the price dropped to the $2.26 level. A two-month low was formed at that level. During this morning’s Asian trading session, natural gas remained down, moving in a narrow range of $2.26-$2.28. The pressure on the price is still current, and we are waiting for the US session for a new concrete step in the future trend.

Potential lower targets are the $2.25 and $2.20 levels. We need an impulse to the $2.30 level for a bullish option. There, we will try to look for support in the EMA 50 moving average. If we get it, we expect a continuation to $2.35 and a move above the weekly open price. Potential higher targets are the $2.40 and $2.45 levels.

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