Oil and natural gas: The price of oil rises to the $78.00

Oil and natural gas: The price of oil rises to the $78.00

The oil price jumped above $78.00 yesterday, the highest in the previous 15 days. 
During the Asian trading session, the gas price remained in the zone around the $2.80 level. 

Oil chart analysis

The oil price jumped above $78.00 yesterday, the highest in the previous 15 days. After that, we see a pullback to $78.00 and consolidation during the Asian trading session. In the European session, oil continued to move sideways. We need a positive consolidation and a new jump to the $78.50 level for a bullish option.

Then we need to keep it up in order to start further recovery. Potential higher targets are the $79.00 and $80.00 levels. We need a negative consolidation and a drop to the $77.50 level for a bearish option. With that, we would form the first lower low, and the bearish trend would probably continue. Potential lower targets are the $77.00 and $76.00 levels.

Natural gas chart analysis

During the Asian trading session, the gas price remained in the zone around the $2.80 level. If the current consolidation does not continue, we could reach above $2.80 again. After that, we need to stay up there, and with the continuation of positive consolidation, we will move towards higher levels.

Potential upper targets are the $2.90 and $3.00 levels. We need a negative consolidation and pullback to the $2.70 level for a bearish option. After that, we could expect to see a further pullback in gas prices. The next support is at the $2.60 level. And if we fail to hold even there, we could then see a stronger drop to $2.50 or $2.40 levels.

 

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