Oil and natural gas: oil makes a jump to the $77.50 level

• The oil price was in a strong bullish trend this week, from $72.50 to $77.46.
• The beginning of this week for the price of Natural Gas was very bad as we saw a drop to the $2.31 level.

Oil chart analysis

The oil price was in a strong bullish trend this week, from $72.50 to $77.46. Last night, we saw the formation of this year’s new high. The price encounters resistance there and starts a bearish consolidation. During the Asian session, we saw a continuation of the pullback below the $77.00 level. We did not stop there, and the price continued to retreat in the EU session, now already at the $76.72 level. The first potential support is in the zone around the $76.50 level.

Increased bearish momentum could make a breakout below and extend this decline. Potential lower targets are $76.0 and $75.50 levels. EMA200 was in the zone around $74.35. We need a positive consolidation and a return above the $77.00 level for a bullish option. With such a move, we would see the formation of a bottom from which it would be easier to start recovery. Potential higher targets are $77.50 and $78.00 levels.

Natural gas chart analysis

The beginning of this week for the price of Natural Gas was very bad as we saw a drop to the $2.31 level. We successfully got the required support at that level and started the bullish consolidation that lasted for the previous three days up to the $2.58 level. In that zone, we encountered the EMA200 moving average, which stopped us there and sent us into a new pullback. This time, the gas price gets support at the $2.38 level.

During the previous Asian trading session, the price of natural gas was successfully maintained above the $2.40 level, and based on today’s consolidation, we expect a recovery. Potential higher targets are $2.50 and $2.55 levels. Otherwise, a drop below the $2.40 support level leads us to retreat to lower levels.

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