Brent Crude formed a bullish inverse head & shoulders as hoped & we made it all the way to our measured target of 111.20/50. We suggested to exit all longs here & try shorts with a stop above 111.95. The market has now topped at 111.33 so this has all worked perfectly.
Support at 110.78 is being tested now but we could continue lower to the next support at 110.40/30. Watch for a low for the day here but if trying longs we need a stop below 110.10 for 109.88 then 109.64. We should see a good bounce from here but longs need a stop below 109.35.
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WTI Crude hit strong 6 month trend line resistance at 97.35 but over ran to 97.80. We did fall back very quickly from here and closed below the trend line. The market could have topped out now after the 1 month rally and we look for 96.39 today. Below here we have good support at 95.85 which held yesterday & could again today. However any longs here need a stop below 95.50 for continued losses down towards 94.82/65. We should see a good bounce from here so worth exiting shorts & trying longs with a stop below 94.35.
Resistance at 97.00/10 but above here a chance to retest 97.35 & possibly even 97.70/80. We should run in to sellers at these higher levels so we can try shorts again with a stop above 98.10.
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By. Jason Sen
