Oil and natural gas: $78.00 level as support for oil price

• The oil price rose to $79.58 on Wednesday, a new February high.
• The price of natural gas is in a bullish trend for the second week in a row.

Oil chart analysis

The oil price rose to $79.58 on Wednesday, a new February high. Yesterday, we had a new attempt to climb to that level, but we stopped at the $79.25 level. From there, we start pulling back to support at the $78.00 level. During the Asian trading session, we slightly recovered to the $78.55 level. There, we encounter new resistance and pull back to the $78.10 level.

We are close to testing the daily low again, and the chances of seeing a break below and a new low are increasing. Potential lower targets are $77.50 and $77.00 levels. We could have additional support and stop the bearish option on the EMA200 moving average in the zone around the $77.75 level.

Natural gas chart analysis

The price of natural gas is in a bullish trend for the second week in a row. On Wednesday, the price managed to climb above the $1.80 level. Yesterday and today, we managed to stay above that level by forming a new high at the $1.88 level. During this morning’s Asian trading session, the gas price consolidated at $1.81. After that, a bullish consolidation was initiated and a move up to the $1.83 level. We expect a continuation of this trend until the end of the day.

Potential higher targets are the $1.84 and $1.86 levels, and depending on the impulse, we could also test the $1.88 weekly high. A drop below $1.80 for a bearish option would be the first sign. With this, we form a new daily low, and it receives confirmation of bearish momentum. We then expect the price of natural gas to drop to $1.78 and test the EMA200 moving average at that level. A break below confirms that the price is losing strength, and we will look at a pullback to the next support. Potential lower targets are the $1.76 and $1.74 levels.

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