WTI Crude, Brent Crude & NatGas outlook.
WTI Crude overbought & hit profit taking as expected & below 9525 turned the outlook negative but prices unexpectedly crashed taking out 7 days of price action to hit 9268. We meet August lows at 9260/50 & of course this is key. A break lower is very possible & should trigger more stops to target key 27 month trend line support at 9200/9190. Watch for a bounce from here with a good chance of a low for the day. However longs need stops below 9150 for a move towards 9115/00.
Immediate resistance at 9335/45 but above here we could target our first resistance at 9395/9400. We should struggle here this morning, but if we continue higher look for a selling opportunity at 9445/65, with stops above 9500.
Brent Crude in a dominant bear trend & unable to beat 2 week highs & resistance at 103.30/40. However we unexpectedly crashed through all support & took out all of the past 2 weeks gains in a matter of hours. Oversold short term with a slightly positive 1 hour candle which may trigger a very small recovery this morning. Immediate resistance at 100.90/95 & we should struggle here but if we continue higher look for a selling opportunity at 101.20/30. An unexpected break higher however targets our next selling opportunity at 101.65/75.
Yesterday's low is 100.17 but no point in fighting the strong 2 month bear trend so be ready for a break lower to target 9995/85 then good support at 9940/30. Watch for a low for the day here but longs need stops below 9890. Just be aware that that a break below 9870 then adds pressure & risks a slide to 2013 lows of 9675 this week.
Natural Gas opened below support at 4020/10 & collapsed to 3885. We have good support at 3880/3870 which is key for today. If we can hold on here we could stage a short term recovery to 3910/15, possibly 3935/40. We should struggle so watch for a high for the day but if prices continue higher look for a selling opportunity at 9390/95.
A break below 3850 signals more selling pressure to follow & we should target 3830/25, possibly as far as 3810/05. A break below 3785 then signals a retest of August lows at 3727 this week.
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