The place my energy-trading buddies at?
If you happen to’re trying past crude oil to get your commodities repair, you then would possibly need to take a look at what Pure Fuel is as much as.
Take a look at its 4-hour chart!
Pure gasoline has been on an uptrend for the reason that begin of the yr when the commodity broke above the $5.00 mark and stayed above its 100 and 200 SMAs.
Costs are consolidating nearer to the $9.50 psychological deal with that has additionally served as resistance in late Could.
Are vitality bulls simply taking a breather? Or are we a short-term bearish alternative?
The U.S. Vitality Info Administration (EIA) will publish its pure gasoline storage numbers and, if April and Could’s tendencies proceed, then we might see one other rise in inventories.
Stochastic can be within the bears’ favor with a bearish crossover within the overbought territory.
Bearish momentum beneath the present ranges might drag the commodity again right down to $8.50 nearer to the 100 SMA and June’s help zone.
Earlier than you promote the commodity like there’s no tomorrow, although, you must know that some merchants expect a rise in demand because of hotter-than-expected temperatures in Texas.
Based on NatGasWeather for June 7-13, the southern 1/three of the U.S. shall be sizzling with highs of higher 80s to 100s as higher excessive strain guidelines, hottest from California to West Texas.
If you happen to see costs breaking above its short-term consolidation, you then gotta be prepared for a transfer to $10 or at the least new month-to-month highs for the commodity. Yipes!
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