Oil and natural gas: Oil is moving away from the weekly high

Oil chart analysis

Oil’s price is retreating after climbing to $77.60 on Monday. For the above, we did not have enough momentum, and the price started a bearish consolidation. During this morning’s Asian trading session, we saw a continuation of the decline and a break below the EMA 200 moving average. That reinforced bearish momentum below the $75.00 level. A new weekly low has now been formed at the $74.30 level.

All indicators show that we can expect a further pullback to the new lower low. Potential lower targets are $74.00 and $73.50 levels. We need a positive consolidation and a return above the EMA 200 and $75.50 for a bullish option. With that step, the chances of oil staying on the bullish side and starting a further recovery are increasing. Potential higher targets are $76.00 and $76.50 levels.

Natural gas chart analysis

The price of natural gas fell to $2.06 yesterday, reaching a new three-week low. Today’s movement is in the $2.10-$2.12 range and the price looks stable for now. We could expect an impulse that would push the price above $2.14 and thereby gain support from the EMA 50 moving average. With the new support, the bullish momentum will increase and continue to the bullish side. Potential higher targets are the $2.16 and $2.18 levels.

In the $2.18 zone, natural gas will test the weekly open price and move closer to the MA 200 moving average. For a bearish option, we need a pullback below the $2.10 level. This moves us to a new daily low and confirms the growth of bearish momentum. Price would be under pressure to test the previous low and make a new one. Potential lower targets are $2.06 and $2.04 levels.

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