During the Asian trading session, the gas price continued its retreat from yesterday’s high to the $6.15 level.
Oil chart analysis
Today’s oil price extended its decline from yesterday below the $85.00 level. This morning’s low was at $84.00, after which oil prices found support and began to recover. It is now back above $85.00, and we need to hold there to continue the recovery. Then we need to reach the $88.00 level, and then we would get closer to the $90.00 previous resistance.
For a bearish option, we need a negative consolidation and a new test of this morning’s low. A price break below would direct us toward the next support zone. Potential lower targets are the $83.00 and $82.00 levels.
Natural gas chart analysis
During the Asian trading session, the gas price continued its retreat from yesterday’s high to the $6.15 level. The current price consolidation is around $5.80. Bearish pressure is still noticeable, which could further affect the price of gas. The next target supports the $5.60 level. Additional price support at that point is in the lower trend line.
A break below would mean we could see further declines in gas prices. Potential lower targets are the $5.40 previous low, then the $5.20 level. For a bullish option, we need a positive consolidation and a return above the $6.00 level. After that, we need to stay in that zone and, with a new bullish impulse, start the recovery. Potential higher targets are the $6.20 and $6.40 levels.
The rise in the number of cases in China has raised concerns about a reduction in fuel consumption in the world’s largest crude oil importer. China’s industrial output growth slowed, retail sales fell, and property prices continued to fall in October, the latest sign that the world’s second-largest economy is losing momentum as it grapples with lingering curbs and a housing slump. OPEC cut its outlook for global demand for 2023. Tonight, we expect the API report on US oil and other derivatives stocks.
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