Brent Crude did push on for 105.31 & made a high for a high for the day exactly here as predicted. We are overbought now & should see some profit taking after 4 days of gains but if we continue higher look for a retest of 105.95/106.05 May highs. This should hold again this week so we could exit longs & try shorts with stops above 106.50 for a test of March lows at 106.80.
Immediate support is at 104.40/30 so a break below here should trigger sell orders & keep the market under pressure for 103.85/75. This should hold the downside so worth profit taking on shorts, but a break lower should see 103.25 & possibly good support at 102.70/50.
WTI Crude did keep up last week’s momentum for a test of May highs at 97.17 but we are overbought and failed here. We expect some profit taking now & perhaps a drift lower to 95.50. If we continue lower look for good support at 94.50/40 & a buying opportunity with stops below the 100 day moving average at 93.90.
Above 97.17 however we hit 3 month trend line resistance at 97.53 & April highs at 97.80. We should fail with in this 97.17/80 band but will need stops above this year’s high of 98.24.
RBOB Gasoline is holding below the 100 day moving average, which is at 293 today. We are now overbought & could head lower towards support at 289/87 from the 200 day moving average & this did in fact hold the downside yesterday, but below here today we could see 283.60/282.50 tested to take profit on any remaining shorts.
We can use 291/92 for a selling opportunity again today with stops above the 100 day moving average at 293. A break higher then targets 294.91, possibly 297.76.
Natural Gas did break above 4.097 to take us up towards 4.163. We did struggle in this area & make a high for the day exactly as predicted but if we push on today we could reach 4.230/250.
We are overbought short term so exit longs & try shorts here with stops above 4.275.
Failure to hold above yesterday’s low of 4.063 however meets good support at 4.034/015 & a low for the day possible here.
Gasoil unexpectedly beat 882.75/883.75 with resistance at 889.35 today. We should struggle here so watch for a high for the day but shorts need stops above 893 for a test of resistance at 898.
We are overbought so there is a risk of profit taking. A drift lower to support at 875.65/25 is possible but below here we should find a buying opportunity at 870/869 with stops below 866.50.
(Click to enlarge.)
By. Jason Sen