WTI Crude headed lower as expected towards our lower target of 91.39/23 where we predicted a low for the day but we bounced a little early from 91.65.
Resistance at 93.90/94.10 held the bounce perfectly as predicted & we should struggle here again today but above here look for a selling opportunity at 94.45/70 with stops above 95.20.
Immediate support is 93.85/65 with better support at 92.80 & a bounce possible. However a break lower risks a retest of yesterday’s low & support in the 91.65/35 area. The daily chart is still quite negative so keeps stops tight below here for a move towards 90.65 then 90.11/00. Exit shorts & try longs here looking for a low for the week.
Brent Crude hit our target for the day of 101.65/35 & we bounced just below at 101.08. If this does not hold today we should retest last week’s low at 100.64 with a break lower to test Fibonacci support at 100.26. Exit shorts & try longs looking for a low for the day, with stops below 100.
Resistance at yesterday’s high of 102.65/85 but above here 103.29 could hold the topside. May be wise to exit longs & try shorts here but on a break higher look for 103.77/92 & a selling opportunity with stops above 104.20.
Natural Gas for July failed just below resistance at 4.208 but then fell sharply through all support. The outlook remains negative for today with further selling pressure possible. If we hold below 4.047 look for a test of support at 3.970/940. We should start to look oversold in the short term at this stage so a bounce from here is possible. However a break lower cannot be ruled out & targets May lows at 3.897/883.
Above 4.047 could open the door to 4.097 but we should struggle here. If we do manage to continue higher look for the next resistance at 4.135/147 & a selling opportunity with stops above 4.170.
Gasoil reached 853.00/852.50 as expected & longs here worked nicely with stops not activated as we did not break 850. Today however the outlook is still quite negative & a break lower is more possible. We do have support at 855 but below here look for yesterday’s low of 851 then a test of last week’s low of 846 & possibly a move as far as support at 844. Exit shorts & try longs here with stops below 841.
If we can hold above 857 we should recover to 860.75/861.25 but above here we run in to yesterday’s high at 864/865. If we continue higher look for resistance at 867 which should hold the topside today.
RBOB Gasoline continued lower as expected to hit the target of 277.04 then bounced from 275.77. We are now testing trend line resistance at 282.25/50 & this should be a tough challenge. However the very short term outlook is more positive so a break higher is possible & could target 284.25/50. If we manage a push higher through here look for the next resistance at 286.27. This is strong resistance for several reasons & is expected to mark the high for the day if tested. Exit longs & try shorts here.
ADVERTISEMENT
Failure to beat 282.50 keeps the market under pressure for a test of support at 280/279.60 but a break lower risks a move towards yesterday’s low at 275.77. A break lower today then targets support at 274.
By. Jason Sen
