Oil and natural gas: Oil under pressure at $84.00 level

Oil chart analysis

The oil price continued its retreat since Friday from the $86.00 level to the $84.00 level. We also remain under the pressure of the EMA50 moving average, which does not allow a break above its line.

So, during the Asian session, we saw a pullback that continues in the current EU session. The increased pressure will make the price of oil continue to retreat, and the potential lower targets are $83.50 and $83.00.

For a bullish option, we need a positive consolidation and a move above the $85.50 level. There, we would retest the EMA50 moving average and have to move above it to be able to continue on the bullish side. Potential higher targets are $86.00 and $86.50 levels.

Natural gas chart analysis

During the Asian trading session, the price of natural gas was in a slight bearish consolidation below the $3.40 level. Today’s low is $3.35, but the expectation is that we will see a break below and another pullback.

On Friday, the price of natural gas jumped to the $3.64 level, forming a new nine-month high. Potential lower targets are $3.30 and $3.25 levels. By lowering the gas price level to $3.25, it would close the gap that was created at the beginning of the market opening on Friday.

For a bullish option, we need a positive consolidation and a price jump above the $3.45 level. That’s how we would close the gap from the market opening last night.

Then, we would have to hold on up there and form a bottom, from which we would start further price growth. Potential higher targets are $3.50 and $3.55 levels.

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