WTI Crude broke lower but held above 91.58/40 as hoped. We then broke 93.31 to retest last week’s high at 93.84 & over ran a little to 93.94. So 93.72/94 is our resistance band today & if we push higher look for 94.46, possibly as far as 94.76. It may be worth trying shorts
here with a stop above 95.00.
Failure to beat resistance sees us drifting lower to 93.35 & below here risks a test of support at 92.85/68. there is a chance of a low here today but longs need a stop below 92.45 for the next support at 92.18.
May Brent Crude retested last week’s low at 107.91/84 & bounced as predicted. We then reached 109.56 resistance & we stated ‘unlikely we can make it any higher at this stage’ as we topped out just above at 109.68.
Support today is at 108.92/83 with a low possible but if we continue lower look for 107.95/78 to be tested once again & a buying opportunity. Longs however need a stop below 107.58 for
107.09/01. Below here risks a test of December lows at 106.66/63.
A push through 109.70 targets 110.01 & possibly 110.46/53. Watch for a high for the day here but shorts need a stop above 110.85.
Natural Gas tried to break last year’s high at 3.933. We warned all last week that the market is becoming very over bought now and we do expect to see a top for the bull run here this year. We managed to stretch to 3.966 but held below our stop loss level of 3.405 keeping us short for the sell off down to 3.858. We can hold those shorts now looking for 8.847 today. We could continue lower and test the next support at 3.774/768. We would expect a low for the day here.
Resistance at 3.933/966 should hold any move higher now but shorts need a stop above 3.405 for 3.413/414 as the next upside target.
By. Jason Sen