Energy markets will be focused on building supplies and ample inventories in absence of any fundamental news to drive markets higher. The unfolding drama in the Middle East could be a major development for the energy markets should hostilities spread throughout the oil rich region.
Sept Crude Oil
After making a new contract high the market went into sell off mode A close under $74.00 will encourage sell offs. A close below $72.50 is negative for the bull drive higher. Price action above $76.00 will encourage advances to the $78.00 level. A close above $78.00 is needed to stage an advance on the contract high of $79.90.
Aug Heating Oil
Last week the market was unable to hold an advance on the contract high of $2.16 per gallon and is now searching out support. A close below the June low of $1.97 will initiate sell offs to test the $1.89 support level.
Aug Unleaded Gas
The market is pushing up against resistance at $2.30 per gallon. A close above $2.30 targets $2.35 plus. Solid support is at $2.25 and a close below $2.21 voids the bull drive higher.
Sept Natural Gas
After making another contract low the market bounced higher and is now poised to advance on $6.505 per mbtu resistance. A close below $5.800 keep will encourage sell offs.
Ralph D. Preston III, Heritage West Financial Inc.
