Oil and Natural Gas: Oil pulled back to $74.00 yesterday

Oil chart analysis

The price of oil yesterday made a big retreat from $77.00 to $73.70 level. The dollar’s instability led to a drop in the price of oil. During the Asian trading session, we managed to hold above the $73.50 level and climb above the $74.00 level. If we plan to see a recovery, the price would have to move above $74.50. Then, it would have to hold up there in order to generate a bullish impulse from that consolidation.

Potential higher targets are $75.00 and $76.00 levels. The EMA200 moving average could ruin our bullish plans in the zone around the $75.50 level. We need to put new pressure on this morning’s support level for the bearish option. A break below would form this week’s new price low, and potential lower targets are the $73.50 and $73.00 levels.

Natural gas chart analysis

The price of natural gas retreated to the $2.20 level yesterday. A new two-month price low has been formed; the last time we were there was at the beginning of December. During the previous Asian trading session, the price stabilized and slightly recovered to $2.23. If the support level holds, the price could initiate a bullish consolidation and rise above the $2.25 level. After that, positive higher targets are $2.30 and $2.35 levels.

In the zone around the $2.35 level, we came across the EMA200 moving average again, which did not allow us to break above it even in the previous three weeks. We need a negative consolidation and a retest of the $2.20 support level for a bearish option. A break below would signal further decline and form a new price low. Potential lower targets are $2.15 and $2.10 levels.

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