- During the Asian trading session, the oil price stayed above $72.00.
- During the Asian trading session, the gas price encountered resistance at $5.67.
Oil chart analysis
During the Asian trading session, the oil price stayed above the $72.00 level. We had a small recovery up to $73.00, and the price is now pulling back to the $72.50 level. If we find ourselves at the $72.00 level again, we could see a break below and form a new lower low. The price could drop to the $70.00 level and try to find new support there.
We need a positive consolidation and a new return above the $73.00 level for a bullish option. Then we need to hold there in order to form a new bottom from which we could start the next bullish impulse. The target is our resistance zone, around $75.00. A breakout of the oil price above would signify that we could see a bigger recovery in oil prices.
U.S. oil production rose to 12.2 million barrels per day last week, the highest rate in 5 months, the Energy Information Administration said on Wednesday. U.S. crude oil inventories fell last week, fueling concerns about weakening demand.
Natural gas chart analysis
During the Asian trading session, the gas price encountered resistance at the $5.67 level. After that, we see a slight pullback to $5.50, where we currently have a support zone. We need positive consolidation and new growth above this morning’s resistance at the $5.60 level for a bullish option. A price break above and staying higher could trigger a new bullish impulse and continue the gas price recovery.
Potential higher targets are the $5.8 and $6.00 levels. We need a negative consolidation and a price pullback below the $5.50 level for a bearish option. In the future, we could expect the price to start with a retreat to the previous low. A move down could threaten previous price support and take us to lower levels. Potential lower targets are the $5.20 and $5.00 levels.
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