Oil and natural gas: Natural gas advances above $2.25
The oil price was again under pressure this morning at the $78.70 level.
The price of natural gas rose to a new three-month high on Tuesday at the $2.27 level.
Oil chart analysis
The oil price was again under pressure this morning at the $78.70 level. This leads to the initiation of a bearish impulse and a drop to the $78.00 level. Yesterday we formed a weekly low at $77.65, and looking at today’s picture, we will probably visit that level again. The new pressure would have the opportunity to push the price of oil to a new weekly low and thereby extend the bearish trend. Potential lower targets are $77.50 and $77.25 levels.
If the price of oil manages to stabilize and move up to the $78.60 level, it could trigger a bullish option. Above, we test the EMA50 moving average, and with a small impulse, we would find ourselves above it. Then, we need to hold up there in order to initiate a bullish consolidation. Potential higher targets are $78.80 and $79.00 levels.
Natural gas chart analysis
The price of natural gas rose to a new three-month high on Tuesday at the $2.27 level. Since the beginning of May, prices have been in a bullish trend with the support of the EMA50 and EMA200 moving averages. Last night, the price retreated slightly to support at the $2.22 level, after which we initiated a new bullish consolidation. We are now at $2.25 and close to the previous high. We expect further continuation to the bullish side until the end of the week.
Potential higher targets are $2.30 and $2.35 levels. For a bearish option, the price of natural gas would have to drop below the $2.20 level. With that step, we go below the EMA50, moving the price to a new daily low. This tells us that growing bearish momentum could push the price even lower. Potential lower targets are $2.15 and $2.10 levels.
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