Oil and natural gas: Oil retreated to $76.12 on Friday
On Friday, the oil price retreated to the $76.12 level, forming a new May low.
On Friday, the price of natural gas continued to fall until the EMA200 moving average and the $2.48 level.
Oil chart analysis
On Friday, the oil price retreated to the $76.12 level, forming a new May low. After the formation of the bottom at that level, we saw the initiation of positive consolidation and price recovery to the $78.00 level. The price stabilized at the $77.75 level at the market’s closing on Friday. During this morning’s Asian trading session, we slightly recovered to the $78.00 level.
In the EU session, we encounter resistance at that level and see a reversal and pullback to the $77.85 level. With this move, we expect to go down to test the $77.75 level from the market opening this morning. We have additional pressure in the $78.00 zone in the EMA200 moving average, which probably contributed to the current pullback. Potential lower targets are $77.50 and $77.00 levels.
Natural gas chart analysis
On Friday, the price of natural gas continued to fall until the EMA200 moving average and the $2.48 level. During this morning’s Asian trading session, the price managed to hold above and initiate a mild bullish consolidation. Now, we see the first stronger impulse that moves above the EMA200 and climbs to the $2.52 level. This could mean that natural gas price have stabilized and that a return to the bullish side will follow.
Potential higher targets are $2.55 and $2.60 levels. In the zone of the $2.58 level, we meet the EMA50 moving average and it will be interesting to see how the price of natural gas will behave there. We need a negative consolidation and pullback below the EMA200i weekly open price of $2.48 for a bearish option. Going below, we will have to look for a new support level.
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