Oil and Natural Gas – The Oil Price Continues to Drop
- The oil price continued to decline during the Asian trading session. yesterday’s high to the $89.80 level.
- This week’s gas price obstacle is the $5.60 level.
Oil chart analysis
During the Asian trading session, the price of oil continued to retreat from yesterday’s high to the $89.80 level. This morning’s low was at the $87.50 level, representing a 0.75% drop since the start of trading last night. The price is currently supporting that level and we see a rebound above the 88.00 mark.
A continuation of the positive consolidation is necessary, as well as a return at the $90.00 mark as upper resistance. This will make it a bullish option. Next, we must see a breakout above the $90.00 mark and attempt to stay there. A new bullish impulse could lead to a further rise in oil prices. Higher targets include the $92.00 and $91.00 levels.
For a bearish strategy, we need to see a negative consolidation as well as a pullback below the $87.50 mark. A key support zone is located at $87.00. If the price drops below that level, it could be a continuation of this price pullback. The $86.00 and $85.00 levels could be lower targets.
Analyse of the natural gas chart
This week’s gas price…