Oil and natural gas: Oil makes a jump above the $79.00

Oil chart analysis

The oil price jumped to $79.25 at the market opening last night. We stayed above for a short time, and during the Asian session, we watched the retreat of the $78.00 level. Now, we are trying to find support to stop this pullback and start a new bullish consolidation. If we succeed in that, we will have a new opportunity to start stumbling off this morning’s high. Potential higher targets are $79.00 and $79.50 levels.

The current price pressure in the $78.00 support zone could lead to a breakout below and the formation of a new daily oil price low. Under such pressure, the price would continue its retreat, seeking support at lower levels. Potential lower targets are $77.50 and $77.00 levels. The EMA200 moving average is low at the $75.50 level.

Natural gas chart analysis

The price of natural gas made a new retreat this morning to the $2.30 level. On Friday, the closing price was at $2.40. during the Asian session, we saw a pullback from this morning’s low, where we got new support. Since then, the price has slightly recovered to $2.33, and we could expect to see a continuation if we move above the $2.35 level. With the bullish consolidation, it would be important to get back above $2.40 to gain momentum to continue on the bullish side.

Potential higher targets are $2.45 and $2.50 levels. The EMA200 moving average is in the zone around the $2.52 level. We need a pullback to $2.30 this morning’s support level for a bearish option. The new pressure could influence us to see a breakout below and the formation of a new low. Potential targets are $2.25 and $2.20 levels.

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