- During the Asian trading session, oil prices continue to trend upward.
- Natural gas prices fell to support at the $5.25 level yesterday.
Oil chart analysis
During the Asian trading session, oil prices continue to trend upward. Today we have solid support at the $76.00 level, and we managed to reach the $77.00 level. Now we need to continue the current positive consolidation. Then the price of oil must climb above $77.00 and try to stay up there. With the next impulse, we would continue to climb.
Potential higher targets are the $78.00 and $79.00 levels. We need a negative consolidation and a drop below the $76.00 support level for a bearish option. The next important level is at $75.00; if we break below the price, we could visit the previous low from Friday. Potential lower targets are the $74.00 and $73.00 levels. In last night’s report, crude oil stocks in the US fell by about 3.1 million barrels in the previous week.
Natural gas chart analysis
Natural gas prices fell to support at the $5.25 level yesterday. Since then, gas prices have managed to consolidate and start a recovery. During the Asian trading session, we saw bullish consolidation and a move up to the $5.55 level. Now we need to reach the $5.60 level and try to move above. If we succeeded, we could see a continuation of bullish consolidation and a move to the $5.80 level.
A potential higher target is the $6.00 level. For a bearish option, we need a negative consolidation and a new descent to yesterday’s low at $5.25. a price breakout below could lead to further declines in gas prices. Potential lower targets are the $5.20 and $5.00 levels.