Oil and natural gas: Gas drops to $2.25 this morning

Oil chart analysis

During this morning’s Asian trading session, the oil price dropped to $81.60. After that, we saw a recovery to $82.45, and we had no strength for further. Additional resistance at that level is the EMA 200 moving average. The price was again forced to pull back and is now at the $81.95 level. The rejection from the EMA 200 looks like a retest, which means that a deeper pullback in oil price is ahead.

Potential lower targets are $81.50 and $81.00 levels. We need positive consolidation and rising prices above the $82.50 level for a bullish option. This gives us the support of the EMA 200 and we hope for further recovery to the bullish side. Potential higher targets are $83.00 and $83.50 levels. Last week’s high oil price was at $83.74.

Natural gas chart analysis

At the opening of the Asian session this morning, the price of natural gas made a bearish gap from $2.31 to $2.26. During this morning’s Asian session, a low was formed at the $2.25 level. The price is still in that support zone and is moving in the $2.25-$2.27 range. Very narrow range of movement, and we need momentum in some direction to determine the trend. An impulse below $2.40 would drop us to a new July low and thus confirm the bearish trend.

Potential lower targets are $2.22 and $2.20 levels. For a bullish option, we need momentum above $2.28. After that, we expect the closing of this morning’s gap and a price jump to the $2.31 level. We would also receive the support of the EMA 50 moving average at $2.29 and be in a good position to initiate a further recovery to the bullish side. Potential higher targets are $2.32 and $2.34 levels.

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