Oil and natural gas: the price of oil crosses $84.00 level

Oil chart analysis

After a bearish Wednesday, Thursday was quite positive for oil prices. Yesterday we saw the testing of the $82.00 level and the weekly open price.

A positive consolidation above the $83.75 level was initiated with new support at that level. During this morning’s Asian session, the oil price managed to stay above $83.75, so we now see a push above $84.00 for the first time this week.

We can expect to continue on the bullish side if the current bullish momentum continues. Potential higher targets are $84.25 and 84.504 levels. We need a negative consolidation and pullback below this morning’s support for a bearish option at $83.75.

Going down below, we are going to a new daily low, which would be a negative sign and move away from the bullish side. Potential lower targets are $83.50 and $83.25 levels. In the $83.25 zone, we will test the EMA200 moving average support.

Natural gas chart analysis

On Thursday, we saw the price of natural gas drop to the $1.71 support level. After that, we get that required support and return first above the $1.74 weekly open price. From there, the price initiates a bullish consolidation and crosses above the EMA200 and the $1.76.

During this morning’s Asian trading session, the gas price managed to stay above $1.77, which could mean that it has enough strength to continue its recovery.

Potential higher targets are $1.78 and $1.80 levels. We need a pullback below $1.76 and the EMA200 moving average for a bearish option. Below that support, we descend to the bearish side. The price of natural gas could test the weekly open price again if we see another drop below the EMA200. Potential lower targets are $1.72 and $1.70 levels.

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