Oil and natural gas: oil makes an impulse to a new low

• The oil price fell to a ten-day low in the morning at $72.89
• At the start of this morning’s Asian session, the price of natural gas made a bullish gap from $2.20 to $2.23

Oil chart analysis

The oil price fell to a ten-day low in the morning at $72.89. After that, during this morning’s Asian session, the price stabilized there and returned above the $73.00 level. At the beginning of the EU session, we saw a bullish impulse up to the $73.50 level. Here, we are trying to move above the daily open price to continue on the bullish side. If oil succeeds in this, it will have the opportunity to start a bullish consolidation above the $74.00 level.

Potential higher targets are $74.50 and $75.00 levels. The EMA 50 moving average is in the zone of $74.50, while the EMA 200 is in the zone of $75.00. For a bearish option, we need a negative consolidation and a new pullback below $73.00. We are, therefore, moving to a new daily low and will probably see the formation of a new low. Oil will thereby confirm that it is under pressure and could continue to seek new lower support. Potential lower targets are $72.50 and $72.00 levels.

Natural gas chart analysis

At the start of this morning’s Asian session, the price of natural gas made a bullish gap from $2.20 to $2.23. After that, the bullish consolidation continued until $2.27, where we formed a daily high. We stopped there, and the price retreated to the $2.24 level. We are now trying to get new support here and attack this morning’s high again. Potential higher targets are $2.28 and $2.30 levels.

For a bearish option, we need a pullback in the price of natural gas below $2.23 and close the gap from the market opening to $2.20. Going down to that zone, we will try to maintain above EMA 200 to get its support. If we do not succeed in this, we expect a drop below and the formation of a new daily low. Potential lower targets are the $2.16 and $2.14 levels. Friday’s low price of natural gas was at the $2.16 level.