Oil and Natural Gas: Oil again at $80.00 on Friday

Oil chart analysis

On Friday, we saw a new drop in oil prices to $80.00. During the previous Asian trading session, the oil price was in bullish consolidation up to $82.00. For now, we encounter resistance in that zone and see a pullback to the $81.65 level.

We remain in this bullish consolidation, hoping to see a break above $82.00 and a continuation to the bullish side. Potential higher targets are $82.50 and $83.00 levels.

Additional pressure on the price in the zone around $83.00 was exerted by the EMA50 moving average. For a bearish option, we need a negative consolidation and pullback to this morning’s support at the $81.00 level.

A break below would signal a retest of last week’s support at $80.00. Potential lower targets are $79.50 and $79.00 levels.

Natural gas chart analysis

At the beginning of the Asian trading session, we saw a bearish gap in natural gas prices at the $3.37 level. In the continuation of the Asian session, the price continued to move sideways in the $3.36-$3.40 range.

We have additional support in this zone in the EMA50 moving average. If we manage to stay above it, we will have a good basis for continuing to the bullish side and closing the gap from the opening of the market last night.

Potential higher targets are $3.45 and $3.50 levels. For a bearish option, we need a negative consolidation and a drop below the EMA50 and the $3.35 level. A break below would confirm a bearish option, and we would see a continued pullback in natural gas prices. Potential lower targets are $3.30 and $3.25 levels.

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