Oil and natural gas: Oil jumped to $86.00 this morning
- At the opening of the Asian session last night, the oil price reached the $86.00 level.
- The price of natural gas made a bearish gap at the beginning of the Asian session, falling to the $2.58 level.
Oil chart analysis
At the opening of the Asian session last night, the oil price reached the $86.00 level. After that, we see a negative consolidation and pullback to the $85.30 level. The current picture tells us that we could see a continuation of the pullback and a test of the $85.00 level. A price drop below this support could negatively affect the trend and send us to lower levels. Potential lower targets are $84.50 and $84.00 levels.
We need a positive consolidation and return to the $86.00 resistance level for a bullish option. Then we need a breakout above and try to hold up there. With the new impulse, we could expect to see further growth and recovery in the price of oil. Potential higher targets are the $86.50 and $87.00 levels.
Natural gas chart analysis
The price of natural gas made a bearish gap at the beginning of the Asian session, falling to the $2.58 level. After that, we see a bullish consolidation and price recovery to $2.64. We can expect to see continued recovery and closing of the gap from the market opening last night. At the current level, we have support in the EMA50 moving average and expect its help in the continuation of the recovery.
Potential higher targets are $2.66 and $2.68 levels. For a bearish option, we need a negative consolidation and a new pullback to support at the $2.58 level. A break below this support would form a new September low. Potential lower targets are $2.56 and $2.54 levels.
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