Oil and natural gas: Oil tries to stay above $82.00
- The oil price dropped to $81.00 yesterday, reaching a new April low.
- The price of natural gas is in a bullish trend for the third day after falling to the $1.60 level on Tuesday.
Oil chart analysis
The oil price dropped to $81.00 yesterday, reaching a new April low. After a successful consolidation in that zone, the price this morning during the Asian session starts a bullish impulse and jumps to $85.50. Up there, we tested the weekly open price but didn’t have the strength to hold on to that zone. The oil price makes a new bearish consolidation and retreats to $82.90. We expect that we could soon encounter a new support level that would stop this pullback.
Potential lower targets are $82.50 and $82.00 levels. For a bullish option, we need a return and formation of a bottom at the $83.00 level. This brings us back above the EMA50 moving average and gains its support. After that, the oil price should go back up to the $85.00 level and move above the EMA200. If we stay above and stabilize there, we will have a chance for further recovery. Potential higher targets are $85.50 and $86.00 levels.
Natural gas chart analysis
The price of natural gas is in a bullish trend for the third day after falling to the $1.60 level on Tuesday. On Wednesday, we saw a consolidation above the $1.65 level, after which a bullish consolidation above the $1.70 level was initiated. There, we got support from the EMA200 moving average and continued up to the $1.75 level. For now, we encounter resistance there and take a step lower to the $1.72 level.
We need to stay above the $1.71 daily open price to stay on the positive side. Potential higher targets are $1.75 and $1.76 levels. For the bearish option, falling to $1.71, we go below the weekly open price and put pressure on the EMA200 moving average. The inability to maintain at that level would lead to a continuation on the bearish side. Potential low targets are $1.70 and $1.69 levels.
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