Oil and Natural Gas: Rising Oil Prices and the Weak Dollar
- During the Asian trading session, the oil price breaks above the $90.00 level.
- The price of natural gas continues its bullish consolidation.
Oil chart analysis
During the Asian trading session, the oil price breaks above the $90.00 level. At the beginning of the trading day, the oil price was at the $88.00 level, and by now, it had risen to the $91.40 level. The price managed to break above the $90.00 level, which was our resistance in the previous 25 days. We need a positive consolidation and stay above the $90.00 level to continue the bullish option. Then we would have an excellent chance of seeing a further recovery in the price of oil.
Potential higher targets are $92.00, $94.00, and $95.00. We need a new negative consolidation and a price return below the $90.00 level for a bearish option. Then we return to the previous zone of consolidation, and the price of oil could drop to $88.00, the previous low. A break below could mean a deeper drop in oil prices. Potential lower targets are the $86.00 and $85.00 levels.
Natural gas chart analysis
The price of natural gas continues its bullish consolidation. The price formed a new higher low last night, and during the Asian trading session, we saw a new bullish impulse that moved us to the $5.80 level. Natural gas has tested this resistance level for a week, and now we could expect a break above.
To continue the bullish option, we need positive consolidation and a move to the next resistance level at $6.00. Then we need to hold on there in order to try to move up with a new bullish impulse. Potential higher targets are the $6.20 and $6.40 levels. We need a new negative consolidation and pullback from the $5.80 level for a bullish option. In that case, the price would move back down to support at $5.40. A break below would form a new lower low, which would signify a potential further price drop. Potential lower targets are the $5.20 and $5.00 levels.
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