Technical Technical Technical

Technical Update - Dutch gas on fire when US gas, Oil and Gasoline receding

Commodities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Dutch Gas turning bullish testing key resistance. Henry Hub hit by strong sell off. Oil losing upside momentum testing rising trend lines. Car drivers seem to get some relief. Carbon Emission showing upside potential


Brent oil was rejected at $125.28 twice closing yesterday below short-term lower trend line in the rising channel. RSI divergence strongly indicates a test of support at 114.84 and a drop to test the lower rising trend line (black line) is likely. 55 and 100 SMA’s will offer support . 

If Brent can close above $125.28 March peak is achievable.

Source: Saxo Group

WTI Crude oil rejected just above $123 twice only to be send back below the short-term rising trend line and closed below support at 116.38. A bearish move to test the lower trend line is not unlikely. Support around 108-105.
To resume uptrend a close above 123.82 is needed.

Source: Saxo Group

Gasoline got rejected twice around $432.60. Unfolding a short double to it closed below rising trend line. Since mid-May RSI has been showing divergence which is a sign of weakening of the uptrend.
With the close below rising trend line yesterday Gasoline could fall back to around 350 possibly 325, 0.618 and 0.764 retracement levels respectively. Some support at 365

Source: Saxo Group

Dutch Gas broke above falling trend line Tuesday pausing at resistance at €98With the massive move Wednesday Dutch gas is at the time of writing trading above key resistance at around 127.50. A daily close above will most likely push Dutch Gas higher. 146.67 would be minimum level to reach but 166-178 is not unlikely. RSI is back in bullish territory.

Source: Saxo Group

Henry Hub gas Has taken out key support at 8.11 selling off to close at the 0.764 Fibonacci retracement level. RSI closed above 40 threshold but a new sell off will most likely pushing it below i.e. in to bearish sentiment. Henry Hub is not unlikely to test key support at around 4.65

Source: Saxo Group

Carbon Emission has broken bullish out of Triangle like pattern. A daily close above 88.65 will confirm new uptrend.  With first resistance at 92.75. However, February peak around 98.50 is not unlikely. To demolish the likely bullish scenario a close below 79.10 is needed.

Source: Saxo Group

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
Beethovenstrasse 33
CH-8002
Zurich
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.