Technical Update - Energy: Oil, Gas, Uranium, Emission
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Brent Oil has broken below rising trend line but still above key support at $96.75. RSI is above 40 threshold i.e. in positive sentiment indicating a bounce from current levels are likely.
If we see a daily close below key support at 96.75 some support at $90.00.
WTI closed below its rising trend line Wednesday but closed yesterday above support at $95.82 and more importantly above March low at 93.53.
RSI is still above 40 threshold i.e. in positive sentiment.
Dutch TTF gas range bound between €95.00 and 133.00. RSI indicates break out is likely to be to the upside.
Henry Hub Gas is within a few cents from testing 2021 peak at $6.466. A correction should be expected starting next couple of days should be expected. However, there is no divergence on RSI indicating we could see higher levels above 6.466 after a likely correction.
However, historically $6.50 is a very strong resistance level. Looking at the monthly chart we can see how prices were knocked down the past two times.
Uranium (Sprott Physical Uranium Trust USD) yesterday moved higher in a steep rising trend. It could be a rising Wedge like formation. Divergence on RSI is building. If the Uranium Trust closes below $14.83 we are likely to see a correction down to around 13.75.
Carbon Emission still range bound between €75.00 and 81.50. Break out is needed for direction. RSI indicates it could be bearish. €81.50 is strong resistance.
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