Oil and natural gas: Oil falls to new July low on Friday

• On Friday evening, the oil price dropped to $78.59, forming a new July low. 
• The price of natural gas continued this morning’s recovery during the Asian session. 

Oil chart analysis

On Friday evening, the oil price dropped to $78.59, forming a new July low. During this morning’s Asian trading session, the oil price moved in the $78.75-$79.00 range. The price has stabilized, and we could expect an impulse from $79.00 and growth to the new weekly high. If we manage to get to the $80.00 level, we will test that EMA 50 moving average. With its support, the price would increase the chances of further recovery.

Potential higher targets are $80.50 and $81.00 levels. The Emma 200 moving average is another step at the $81.35 level. For a bearish option, we need a negative consolidation and a drop below this morning’s Asian low. With that, we go to a new daily low and confirm the return to the bearish side. Potential lower targets are $78.50 and $78.00 levels.

Natural gas chart analysis

The price of natural gas continued this morning’s recovery during the Asian session. A new high was formed at the $2.20 level, and we are now moving slightly below that level at $2.18. We need to continue the bullish consolidation to climb to $2.25 and break the EMA 200 moving average. If we manage that, we get moving average support to continue to the bullish side.

Potential higher targets are the $2.30 and $2.35 levels. For a bearish option, we need a negative consolidation and pullback below the $2.15 level. Going down below, we move to the bearish side below the weekly open price. That will increase pressure on the price of natural gas to continue its retreat. Potential lower targets are the $2.10 and $2.05 levels.