Building inventories and a dissipating fear premium defined trade for the month of September, as energy prices headed lower across the board. Energy markets will need underlying fundamental information in order to reinvigorate the bears or embolden the bulls. Be on guard for hedge funds and other large speculators to add to the weight of market direction once a solid trend emerges.
November crude oil
Last weeks push above $62.26 per barrel is bull friendly and encourages further gains to test resistance at $64.46. A close above $64.46 targets $67.00. Price action contained below $63.00 is negative and should sell off to test $61.55, but only a close below $60.00 puts bear forces back in charge.
November heating oil
The market is bearish but attempting a recovery to hold above last weeks low of $1.6749 per gallon. Trade that is contained below 18136 should encourage sell offs but only a close below 16749 keeps bear forces in firm control.
November unleaded gas
The market is bearish but attempting a recovery to push through resistance at $1.5732 per gallon. A close above 15732 targets 16400. A close below 14864 is needed to initiate new lows.
November natural gas
The market is bearish and a close below $5.280 per mBtu targets 5100. While a push above 5948 should encourage rallies to 6400.
