Market Overview

WTI Crude, Brent Crude & NatGas outlook.

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.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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