Technical Update - Energy. Oil continue its uptrend looking at previous peaks
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Brent Crude oil is testing 0.618 Fibonacci retracement and resistance at around $123. RSI is back above 60 threshold i.e. bullish sentiment with no divergence indicating March highs at around $139.13 is likely to be tested over the summer. Minor resistance at around 129
WTI Light Sweet Crude oil is at the time of writing trading well above the 0.618 Fibonacci retracement at around $116.38. With higher highs and higher lows and RSI above 60 uptrend is confirmed. No divergence on RSI indicates WQTI oil is likely to test March highs.
Gasoline has performed a new highs with no obvious resistance levels. However, 1.382 Fibonacci projection of the March correction indicates first target at around $427.40. However, further upside to the 1.618 projection at around 451 is not unlikely. To reverse the uptrend Gasoline needs to close below $362.
Dutch TTF Gas seems to bounce off from the support around €84. However, upside picture is not convincing, Dutch Gas needs to at least break above the falling trend line.
When the price moves have been that extreme as we have seen in Dutch Gas it is sometime useful to look at intra day time periods for levels and trends.
On the 1 hour chart an uptrend seems to be building with resistance at the 200 SMA and at around €97.94. A break above 200 SMA could be first indication of further upside which will be confirmed if we see a break above resistance at 97.94.
Henry Hub Gas seems to have peaked. Twice it has spiked higher but failed to close above $9.Divergence on RSI indicates a reversal i.e. a down wards correction. A daily close below 7.85 will confirm trend reversal
However, if Henry Hub Gas manages to close above $9 and RSI closes above its falling trendline new highs should be expected.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.