Energy Charts Favor The Bears

On April 23, 2013 by TradingDesk

The overnight bounce in energy prices was quickly erased once floor trading began on the Nymex Monday, and although HO, Brent and WTI did manage to end the day in the green, the feeble nature of the bounce suggests more selling to come. This morning, more weak data out of China and Europe has sparked another wave of selling across the commodity universe, as the Euro has broken below 1.30 on speculation the ECB will cut interest rates to try and stop the bleeding in the area’s economic activity. With macroeconomic indicators continuing to show weakness, and charts favoring the bears, it looks like RBOB and HO are setting up to test support in the low $2.70s, with an ultimate target in the $2.50 range for both.

CLICK HERE for a PDF of this morning’s charts

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