Oil and natural gas: Natural gas falls below the $1.60 level

Oil chart analysis

Friday took the oil price to a new high at the $78.48 level. During the previous Asian trading session, we watched the price retreat and formed a daily low at the $77.60 level. We are holding above for now but haven’t moved far, only up to the $77.70 level. Oil price pressure is still very much present on the chart, and expectations are to see a breakout below and the formation of a new daily low. Potential lower targets are $77.50 and $77.40 levels.

If the bearish momentum is strong, the price could slide even lower. The EMA200 moving average is in the zone around $76.60 levels. We need a positive consolidation and a move above the $78.00 level for a bullish option. We would be close to testing the weekly open price there. With the breakout above the price, it gets good momentum to continue the recovery. Potential higher targets are $78.20 and $78.40 levels.

Natural gas chart analysis

On Friday, we saw a new drop in the price of natural gas to a new low of $1.63. The bearish scenario continues on Monday, and the price falls to $1.58. At the market’s opening this morning, the price made a bearish gap from $1.65 to $1.60. There is a lot of pressure on the price, and we expect to see a further pullback and the formation of a new low. Potential lower targets are $1.56 and $1.54 levels.

We need a move above the $1.62 level for a bullish option. Thus, we would form a bottom from which natural gas could initiate a bullish consolidation. Potential higher targets are $1.64 and $1.66 levels. By returning to the $1.66 level, the price would take a significant step to the bullish side, which could relieve it of bearish pressure.

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