Oil and natural gas: Oil slides to new low as stocks fall
- On Friday, the oil price experienced a significant pullback from $77.00 to $73.00.
- During this morning’s Asian session, the price of natural gas fell to the $1.93 level, forming a three-month low.
Oil chart analysis
On Friday, the oil price experienced a significant pullback from $77.00 to $73.00. However, during this morning’s Asian trading session, we observed a drop to a new low of $72.26. The current price is striving to stabilize in this zone, indicating a potential for recovery. We are currently at $73.00, and a push to $74.00 could see us back above the weekly open price. If oil manages to hold at this level, it will be in a stronger position to initiate a promising bullish consolidation.
Potential higher targets are $74.50 and $75.00 levels. The first additional resistance is the EMA 50 moving average in the zone of the $75.00 level. We need a negative consolidation and a drop to the $72.00 level for a bearish option. With that step, we descend to a new lower low and confirm the instability of the oil price. Potential lower targets are $71.50 and $71.00 levels.
Natural gas chart analysis
During this morning’s Asian session, the price of natural gas fell to the $1.93 level, forming a three-month low. All last week, the price was under pressure at the $2.00 level, and on Thursday, we saw the first break below. On Friday, bearish consolidation intensified, and natural gas retreated to the $1.94 level. This morning, the price did not have the strength to start a recovery, but now we see attempts to start a bullish consolidation.
Natural gas would need to return above $2.00 to gain support from the EMA 50 moving average. Potential higher targets are $2.05 and $2.10 levels. For a bearish option, we need a negative consolidation to the previous low. New pressure would only strengthen the impulse on the doel and form a new lower low. Potential lower targets are $1.90 and $1.85 levels.
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