Brent has held below 118.20/30 now for a week. It does look like we are setting up for a correction & a move back to 117.30 looks likely today. Watch for a break lower to target good support at 116.70 & the chance of a low for the day. Unlikely we fall any further but 116.19 would be the next target then 115.71 should be an excellent opportunity for longs.
Above 118.30 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 although not expected, would then target 119.80/120.00. Here we need to exit all longs & can try shorts with a stop above 120.50.
WTI Crude Oil looks ready to sell off. We are looking for another test of 96.80/70 support with a break to target 96.30/20. This is good support & we could bottom here but on a break we should test 95.75/65. Below here we test Feb lows at 95.06/94.97.
Today any rally through resistance at 97.50 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.
Natural Gas caught us out by breaking 3.235/30 trend line support & triggering stops below 3.207. We could now continue lower to test the 200 day moving average at 3.095/085. We also have daily & weekly Fibonacci support and mid Jan lows so this is an important level & we should bottom here. Worth exiting shorts & trying longs with a stop below 3.050.
Resistance today is seen at 3.210 but above here 3.256 should see us top out.
March RBOB did hold support at 303.38 as hoped but then burst through resistance in the 307/308 area. We have therefore embarked on the next leg of the bull run which should target 320 & probably as far as 323.89.
If we cannot beat yesterday’s high of 313.86 we may see a small pullback to find support at 310.18 then 308.20/00 which should hold the downside.