Energy Prices Under Pressure
On one hand, we are not surprised to see energy prices under initial pressure today but we are surprised that the declines are not more significant. However August crude oil did damage its charts with another dip below $35.00 and in the process made an 11 day low which turns up the pressure on existing longs.
Bearish chart action in natural gas from last week was joined by bearish fundamentals as supply continues to overwhelm and demand has shown little evidence of climbing off the deck. While the market might garner some support from a slight warm-up in the West Coast, the bull camp will need a reversal of negative macro-economic psychology from early this morning just to avoid a retest of last week’s low.
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