Oil and natural gas: oil returns to the $85.00 level

Oil chart analysis

The oil price was in retreat this week from the $88.28 level. On Wednesday, we saw a drop to the $82.06 level, after which the price started to recover to resistance at the $85.50 level. Then, we see a new pullback to $82.50, where we once again held on and returned above the $84.00 level with a new impulse.

For now, we are holding above that level and trying to get support to continue to the bullish side. Potential higher targets are $85.00 and $86.00 levels.

EMA50 would represent an obstacle for us in the zone around the $85.50 level. We need negative consolidation and price pullback below the $83.00 level for a bearish option.

After that, we would again have the opportunity to approach the previous support zone. Potential lower targets are $82.00 and $81.00 levels.

Natural gas chart analysis

The price of natural gas jumped to $3.50 this morning. Before that, we consolidated for a long time around the $3.00 level, after which the price broke above the EMA50 moving average and started a bullish consolidation. The current price is $3.57, and we could expect to see a continuation and a break above the $3.60 level.

Potential higher targets are the $3.65 and $3.70 levels. We need a negative consolidation and a price pullback below the $3.50 level for a bearish option. After that, we could expect to see a further pullback to the bearish side. Potential lower targets are the $3.45 and $3.40 levels.

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