Today’s technical forecast for Energy Futures

Today’s technical forecast for Energy Futures

WTI Crude Oil went for a retest of 98.15/25 highs where we expected prices to top out with over bought indicators flashing in the short term & a bearish divergence on the daily chart. The high was 98.11 so this worked pretty much as expected and we took a tumble to 96.71 support and bounced from here. Today any rally through resistance at 97.37 up to 98.00/24 is seen as a selling opportunity again. However we need to keep stops tight above 98.50 for continued strength up to 99.52.

Below 96.21 we should test 96.63/53 support but below here we see 96.17. This may hold the downside today but watch for a break to target 95.75/65 and then 95.06/94.97.

March Brent failed at 119.07/17 highs as expected and we now have a small bearish double top pattern. We are now trading the April contract which should test good support at 117.65/55 this morning. If we cannot hold here then look for 117.10 & possibly 116.66/61 today to cover all shorts & look for a bounce.

Above 118.19 we have a roll over gap to fill at 118.42 which should mark the high for today. However above here resistance at 119.00/17 again. A break is not expected but would then target 119.80/120.00. Here we need to exit all longs & can try shorts with a stop above 120.50.

Gasoil failed at the 1029/32 band this week as expected. As stated, this is a crucial area & we did warn of a top for the bull run here. Any longs need a stop below support at 1011 today as this risks further losses with 1000/999 the next target. Here we exit any shorts & buy in to longs in expectation of a low for this correction. Stops below 995.

We have some resistance at 1016/17 today but a above here the 1029/32 band should be a major obstacle again today. A close above 1032 is now needed to continue the run to 1037 then 2012 highs of 1045 where bulls could run in to a big obstacle.

Nat Gas bounced right off the 5 month trend line support at 3.220 as expected, where we bought in to longs & this trade worked well as we hit 3.314 & got very close to the target of 3.330. If we push through here today there is scope to test 3.359 resistance this week.

Support today seen at 3.265 and this may hold any drift lower but a break could then allow another test of 3.235/30 trend line support. We can try longs here again, with a stop below this week’s low at 3.207 as we look for an end to the recent weakness now.

March RBOB tried to break higher but failed at 308.50 before quickly falling back to support at 303.38. This support may hold again if tested today but below here look for 302.17. A break could then take us down to 300.44.

We will need to see prices back above 306.10 for a chance to test resistance in the 307/308 area. A break & preferably a close above here is unlikely but does open the door to 309.22 which should be a very tough obstacle and could hold a rally for now.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More