Oil and natural gas: oil on the move to the $79.00 level

Oil chart analysis

Since the start of this week, the price of oil has been in a bullish trend. In the previous hour, we saw the formation of a new weekly high at the $78.98 level. We are now at $78.80 and expect to see a continuation above the $79.00 level. Potential higher targets are $79.50 and $80.00 levels. The last time we were above $80.00 was in the last week of May.

We need a negative consolidation and pullback below the $78.00 level for a bearish option. There, we test the daily open price. The impulse below shifts us to the negative side and thus confirms the weakening of the oil price. Potential lower targets are $77.50 and $77.00 levels. Additional support could be found in the EMA50 moving average in the $77.50 zone, while the EMA200 is in the $76.60 zone.

Natural gas chart analysis

The price of natural gas rose to $3.19 last night, reaching a new June high. After that, at the beginning of the Asian session, we see a bearish gap. For now, the price fails to close this gap and retreats to the $3.10 level. We expect a further pullback to $3.05 and a test of the EMA50 moving average. If the support does not last, a further drop in the price of natural gas will follow.

Potential lower targets are the $3.00 and $2.95 levels. The EMA200 moving average is in the zone of $2.90 levels. We need positive consolidation and price stabilization above the $3.15 level for a bullish option. If we succeed, we will be in a good position to continue on the bullish side. Potential higher targets are $3.20 and $3.25 levels.

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