Oil and natural gas: Oil price drops to $80.50

• Yesterday, the price of oil fell from $82.70 to $80.45. 
• During the Asian trading session, the price of natural gas remained above the $2.20 level. 

Oil chart analysis

Yesterday, the price of oil fell from $82.70 to $80.45. During the Asian trading session, the oil price maintained above the $80.80 level. We had a small jump to the $81.20 level, then a pullback followed, and the price fell to $80.34. The price is consolidating again and starting a new recovery. We need a positive consolidation and a return above the $81.00 level for a bullish option. So we would climb above the EMA50 moving average and get its support. Potential higher targets are the $81.50 and $82.00 levels. We need a negative consolidation and a price break below this morning’s support level for a bearish option. After that, we could expect to see a further pullback in oil prices. Potential lower targets are the $80.00 and $79.50 levels.

Natural gas chart analysis

During the Asian trading session, the price of natural gas remained above the $2.20 level. After the consolidation ends, we see a bullish impulse pushing the price above the $2.30 level. Now we can track the strength of this impulse and look for the next resistance zone. Potential higher targets are the $2.35 and $2.40 levels. This week’s high price is $2.31 level. We need a negative consolidation and a price pullback below the $2.20 level for a bearish option. After that, we could expect to see a continued retreat in the price of natural gas. Potential lower targets are $2.10 or $2.00 levels.

 

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