Oil and natural gas: Oil again above $75.00 on Friday

Oil chart analysis

The oil price rose to $75.57 on Friday evening, reaching a new October high. Last week’s bullish price jump was 10.00%. After the formation of a new high, oil meets resistance and pulls back to the $74.45 level. This week it is important for us to hold above the $74.00 support zone. A break below would signal a further pullback, and we would have to test the EMA 50 moving average and the $73.00 zone.

If the support is insufficient, we expect a further pullback to a new low. Potential lower targets are $72.00 and $71.00 levels. For a bullish option, the oil price needs to be held above the $74.00 support zone. From there, we can expect to see the initiation of a new bullish consolidation. Potential higher targets are $76.00 and $77.00 levels.

Natural gas chart analysis

On Friday, the price of natural gas rose to $3.14, a new four-month high. The formation of this high was soon followed by a strong bearish impulse and a fall to $2.98. The price is again below $3.00 and it closed there at the end of the trading day. Despite the strong bearish consolidation, if we manage to stay above $2.95 last week’s support zone, we can hope for a new bullish consolidation.

Potential higher targets are $3.05 and $3.10 levels. For a bearish option, we need a negative consolidation below $2.95. In that zone, we will try to get support from the EMA 200 moving average. This time, we need an impulse below and the formation of a new low. Potential lower targets are $2.90 and $2.85 levels.

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