Natural Gas broke support at 3.966/961 & managed to hold just above the next support at 3.886/860. We can try longs here today & look for a bounce with the market now over sold in the short term. We need a stop below 3.833 for a test of the next support at 3.792.
Resistance at 3.966 is our first obstacle on a bounce. A top here is possible today but a break above 3.991 could signal a move towards this week’s high of 4.044.
RBOB Gasoline broke strong support at 299.52/41 & collapsed all the way to 290.98 support. We have over run a little but we look over sold in the short term & have pushed back above 290.98.
Today therefore there is a chance of a recovery to 295.90. Watch for the market to turn lower here but a push higher could allow a test of stronger resistance at 298.84/299.41. It may be wise to exit longs here & perhaps try small shorts with a stop above 301 as a break higher could target 304.17/305.07.
290.98/290.23 is support today & we could bounce from here again. On a break however we meet 100 & 200 day moving average support at 288.77/287.94. So again we look for a bounce here but longs will need a stop below 286 as this risks a move to good support at 282.55.
By. Jason Sen