Brent Crude broke 100.00/85 but held on to the next support at 99.50. Today we have support at 101.20/10 but below here look for 100.70/60 & then a retest of 99.85/65. A break lower today could target the 200 week moving average at 98.93. A low for the day is very possible here but longs need stops below 98.60.
102.00/10 is our first resistance but a break above yesterday’s high at 102.48 sees 102.80/85 & possibly a move towards 103.50/60. Exit longs & try shorts here with stops above 104.00.
Click to enlarge
WTI Crude again tested support in the 91.65/35 area & this held nicely. We then shot higher reaching the upper target of 93.50/80 where we advised to enter shorts & we topped exactly here in fact. Use stops above 94.20 as stated yesterday for the next resistance at 94.80/90. We have been moving sideways in the past few sessions as suggested by our green arrow. We can cover some shorts at 92.75/65 today but below the 200 day moving average at 92.30 look for a retest of 91.45/25. The daily chart is still quite negative so keeps stops tight on any longs below 91.00. On a break lower look for a move towards 90.65 then 90.11/00. Exit shorts & try longs here looking for a low for the day.
Click to enlarge
Natural Gas resistance at 4.011/034 did hold the bounce yesterday as predicted, where we suggested exiting longs & trying shorts with stops above Friday’s high of 4.064. This trade has worked perfectly with a high at 4.040. This resistance applies again today so we can try the same trade but a break higher would target resistance at 4.083.
We have fallen back to support at 3.970/940 which is also holding to offer a nice profit on our shorts. We look oversold in the short term at this stage so a bounce from here is possible as stated yesterday. However a break lower cannot be ruled out with the daily chart still negative & targets May lows at 3.897/883. A break lower would then see 3.861 tested.
Click to enlarge
RBOB Gasoline failed at resistance of 282.25/50 for the second day & also held support at 274. However today’s outlook is still quite negative so watch for a break lower to then target 271/70. If we continue lower we should test this years low at 269.15/268.80 this week but should look quite oversold at this stage.
If we can hold above 278.20 we could try for 280.90/281 today. We still have resistance at 282.25/50 but a break higher through 283.30 should trigger stops and a move towards resistance at 285.40/50. Look for a high for the day here to exit longs & try shorts with stops above 287.
Click to enlarge
Gasoil headed lower as expected breaking 838 but only as far as 834.25 before we bottomed. We warned that we were oversold short term & a sharp bounce unexpectedly took us through all resistance. Today strong resistance at 859 should hold the topside again so we could use this as a selling opportunity with stops above 863. Immediate support is 853.75 but below here sees 851/50 & possibly 846.50/25. Watch for a bounce from here & may be a low for the day but a break lower could target 841/840 then yesterday’s low at 834. Another break lower today then targets 831/830.
ADVERTISEMENT
Click to enlarge
By. Jason Sen
