March Brent Crude fell back towards 112.55/49 which we stated should provide a good buying opportunity as we look for a low for the day and the low was in fact seen at 112.60. Resistance from last week’s high is at 113.84 also held the topside and we can look to trade this range again while we wait for a breakout.
A break higher in this steady bull run is worth buying in to as we target 114.31/50 to fill a small gap from October.
Above 114.72 we could then push on towards 115.91/116.02. We do have some support at 113.04 today where it may be worth covering at least some shorts but below here we look for another test of 112.60/50 to exit remaining shorts and perhaps try longs. However stops on longs needed below 112.10 for a good buying opportunity at 111.76/66 where we would be attempting longs again with a stop below 111.40.
Gasoil at last hit our target of 977.08/979.19 as hoped and came to a halt. We know this is very tough resistance and with the market starting to look over bought, this area should trigger profit taking for the week. However if attempting shorts we need a stop above 981.25 for 982.75 then 989.25 in to next week.
Support at 968/967.25 was tested and we did dip just a fraction below here to 966 but quickly recovered. So 967.50/966 should act as support again today but we are just breaking the one month up trend line, so below here today we could see 964/963.50. A break below 961 could then target very strong support at 657.95/956.65 for a buying opportunity.
Nat Gas took a tumble as expected to good support for the day at 3.300/3.258 and we bottomed out exactly here at 3.267. However we are lower again today and looking like we can target 3.209/06 now. We should look over sold in the short term at this stage so may hold a low here. However a break of 3.175 could keep the pressure on for 3.122 then 3.087.
A bounce looks unlikely but we would run in to resistance at 3.300 which would be tough to beat. However a break above 3.330 may allow for further gains to a target of 3.366/86.
WTI Crude Oil hit resistance at 96.80/92 to offer a selling opportunity as hoped and we fell back to our first support and downside target of 95.45/40 where we expected a bounce and indeed the low was 95.47.
Some nice profit there and we can trade this range again today while we wait for a break out. With the market so overbought the risk is of a break to the downside so any longs need a stop below 95.25 for 95.00 and possibly further losses towards 94.55/48.
Unlikely we fall any further today so watch for a low here but if we break below 94.30 we could be on the way to 93.90/75 next and what looks like a good buying opportunity this week.
A break above 97.30 however triggers stops on shorts and keeps the 6 month bull running towards 97.75/95 then 98.58. Above here 99.52 looks achievable.