Energy markets have been volatile with Natural Gas making a new low last week, unleaded gas making a new high, crude oil approaching it’s contract high and heating oil showing no sign’s of any solid direction. Unleaded gas is leading the bull charge with a breakout to new highs on June 29. With the driving season in full swing keeping the Unleaded Gasoline market tight and the technicals indicating a breakout the market looks poised further gains.
Aug Crude Oil
A close above last week’s resistance of $71.35 signals a turn to higher prices. The market is bullish and approaching the high made on May 2 of $76.85. First up side target is resistance at $74.56 with support for this move at $72.45. A close under $71.35 will encourage sell offs.
Aug Heating Oil
The market has been in a 30 cent trading range since April with no solid trend in place.
A close under 20013 will encourage sell offs and a close below 19269 is will put bear forces in control. The contract high is at 21601 made on April 19. A close above 21062 is needed to ignite bull trend forces.
Aug Unleaded Gas
Price action is indicating a bullish trend with the market making a new high of 2.2450 on June 29. First up side target is 2.2715 with a close below 2.1400 needed to void a bull breakout for this move. A close below support at 2.1000 is needed to initiate sell offs.
Aug Natural Gas
The market is bearish and made a new low on June 29 of 6040. A close below key support at 6000 should drive the market to 5924. With long time support at 6000 the market may not break this level on its first attempt. A pop over 6265 is needed to drive the market higher and close over 6312 is needed for a stronger move higher.
Ralph D. Preston III
Heritage West Financial, Inc.
