London Gas Oil futures advanced past $1,300 on Monday, extending gains as the contract closed at $1,303.99 on the five-hour chart. The move placed the contract nearly 8.5% above its 20-period simple moving average, with technical indicators signaling potential overbought conditions.
The Relative Strength Index (RSI) reached 73.46, while the Money Flow Index (MFI) stood at 97.92, both pointing to stretched valuations. The Moving Average Convergence Divergence (MACD) printed at 10.09, and the Average Directional Index (+DI) was 40.64, reflecting strong upward momentum.
Traders monitored major resistance at $1,328, where a double-top pattern has formed. Support levels were identified at $1,202 (20-period SMA) and $1,250 (50-period SMA and Ichimoku Cloud). Invalidation thresholds were set at $1,229.55 for bulls and $1,328 for bears.
Four trading scenarios were outlined for the session. A bullish breakout above $1,328 targeted $1,393.80 and $1,477.50 with a stop at $1,218, while a pullback to $1,250 offered a conservative entry with the same targets. Bearish reversals near $1,328 aimed for $1,250 and $1,202, with stops at $1,352. The WarrenAI tool and ProPicks AI strategy were cited as references for trade setups, though no direct performance claims were made in the report.
