- At the beginning of the Asian session, the oil price managed to maintain itself in the $83.50-$84.00 zone.
- The price of natural gas dropped from $7.80 to $7.10 yesterday.
- Oil fell on Friday amid fears of a recession and a strengthening US dollar.
Oil chart analysis
At the beginning of the Asian session, the oil price managed to maintain itself in the $83.50-$84.00 zone. Then a bearish impulse followed, and the price of oil fell to the $80.50 level. Now we are trying to stay above it so we can start the recovery. For a bullish option, we need a new positive consolidation and a return to the $82.00 level. If we manage to climb above, we will return to a safer zone for the price of oil. Further positive consolidation could take us up to $84.00, this morning’s resistance zone. Potential higher targets are $85.00 and $86.00 levels. We need increased pressure on the $80.00 level for a bearish option. A drop in the price below and staying below it would be a sign that we can expect a further weakening of oil prices. Potential lower targets are $79.00 and $78.00 levels.
Natural gas chart analysis
The price of natural gas dropped from $7.80 to $7.10 yesterday. During the Asian trading session, the gas price recovered slightly above the $7.20 level. We then see another pullback below the $7.05 level, and it is possible that we will see a drop below the $7.00 level if pressure on gas prices continues. The continuation of the negative consolidation would bring us down to the $6.80 level, and the last time we were there was on July 15. For a bullish option, we need a new positive consolidation and a return above the $7.20 level. After that, the price could begin to recover to the $7.40 level, where the MA50 moving average awaits us. Potential higher targets are $7.50 and $7.60 levels.
Oil fell on Friday amid fears of a recession and a strengthening US dollar. Losses were limited by supply problems following the mobilization in Russia. We also have a deadlock in negotiations to re-establish the nuclear deal with Iran.
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