Oil and natural gas: Oil price fell to a new annual low
On Tuesday, the price of natural gas dropped to the $2.18 support level.
Oil chart analysis
During this morning’s Asian session, oil prices continued yesterday’s bearish trend to a new low of $69.19. After its formation, the price started a recovery, breaking through the daily open price. A new daily high was formed at the $71.45 level. We are currently looking at a pullback to the $71.00 level, and the price is looking for new support. Staying above the daily open price on the positive side should be considered a positive move.
Based on this, we expect new bullish oil price consolidation moves and growth to a new daily high. Potential higher targets are $72.00 and $73.00 levels. Moving above $72.00, we get support from the EMA 50 moving average. For a bearish option, we need a drop in oil price below the daily open price and the $70.00 level. That step reinforces the bearish momentum, and it is possible that we will see a test of this morning’s low. Potential lower targets are the $69.00 and $68.00 levels.
Natural gas chart analysis
On Tuesday, the price of natural gas dropped to the $2.18 support level. This was followed by a bullish consolidation and a return above the $2.30 level. During this morning’s Asian trading session, the price managed to hold above $2.30 and climb to a new weekly high at the $2.33 level. We have good bullish momentum and expect to continue conquering higher levels.
Potential higher targets are the $2.36 and $2.38 levels. For a bearish option, we need a negative consolidation and a drop below the $2.30 level. With that, we move below the daily open price and will have to test the EMA 50 at the $2.28 level. The impossibility of the natural gas price being maintained there will influence us to see an impulse below and the formation of a new daily low. Potential lower targets are the $2.26 and $2.24 levels.
