Oil and natural gas: the price of oil is close to $74.00

• On the first day of this week, oil prices fell to $70.00, which gave gloomy forecasts for further continuation.
• The price of natural gas climbed to the $3.35 level this week, forming a new annual high.

Oil chart analysis

On the first day of this week, oil prices fell to $70.00, which gave gloomy forecasts for further continuation. On Tuesday, the price stops the decline there and slowly consolidates, moving above the $71.00 level. After that, with bullish consolidation on Wednesday, we climb up to the $73.50 level. The price encounters resistance in that zone and makes a new pullback to the $71.00 level. Yesterday, we watched the initiation of a new bullish consolidation from that level, and the price jumped above $73.75.

During the Asian trading session, oil prices managed to stay high above the $73.50 level. We now have a good position to move towards the $74.00 level. Potential higher targets are $74.50 and $75.00 levels. We need a negative consolidation and price pullback to the $73.00 level for a bearish option. A drop below would drop us to a test of the EMA50 moving average in the zone around $72.50. Potential lower targets are $72.00 and $71.50 levels.

Natural gas chart analysis

The price of natural gas climbed to the $3.35 level this week, forming a new annual high. We stopped there and began the retreat that continues today. This week’s low was formed yesterday at the $2.90 level; since then, we have been moving in the $2.90-$3.05 range. We are currently at $2.96 and encountering resistance at $3.00. We need a break above if we plan to see another recovery in oil prices. Potential higher targets are $3.10 and $3.20 levels.

We need a negative consolidation and a price drop below the $2.90 level for a bearish option. In that zone, we came across the EMA50 moving average, which supported us in the previous two weeks. A drop below it would increase the bearish pressure, which would have a negative impact on the continued movement of the natural gas price. Potential lower targets are $2.80 and $2.70 levels.

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