- During the Asian trading session, the price of oil hovered around the $76.00 level.
- During the Asian trading session, the gas price continues to fall below the $6.00 level.
Oil chart analysis
During the Asian trading session, the price of oil hovered around the $76.00 level. Oil rose on Monday as prospects for a recovery in demand, boosted by the easing of Chinese curbs and the United States’ decision to buy oil for its national reserves, outweighed fears of a global recession. The announcement by the US Department of Energy on Friday that it will begin buying crude oil for the Strategic Petroleum Reserve with delivery in February next year also supported the forecast for rising prices.
Oil price is currently meeting resistance at $76.50 and pulling back below the $76.00 level. We could expect a major price pullback to $75.00. A breakout of the oil price below would mean a drop to the previous low in the zone around the $73.00 level. For the bullish option, we need a positive consolidation and a transition to the $77.00 level. That would put us above the upper resistance line. Then we need to hold up there and initiate a new bullish impulse to continue the recovery. Potential higher targets are the $78.00 and $79.00 levels.
Natural gas chart analysis
During the Asian trading session, the gas price continues to fall below the $6.00 level. The price did not stop at the $5.80 level and saw a break below and a continuation toward the $5.60 level. Here we could get support and break the bearish scenario. Potential lower targets if there is a continuation are $5.40 and $5.20.
For a bullish option, we need a positive consolidation and return to start above the $5.80 level. Thus, the gas price would form a new higher low compared to the low from the beginning of the month. Then we need a bullish impulse and a return to the zone around the $6.00 level. Potential higher targets if we see a break above are $6.20 and $6.40.