Nov. 21, 2006 — Technically the energy markets have a bearish bias and continue flirting with this year’s lows. Inventories are above the five-year average and demand is leveling off. In the absence of any market driving information, the energy complex should stay in a lack-luster trading range until fresh fundamental news reinvigorates the bulls or the bears to take control and define a major trend.
January crude oil
The market is bearish. A dip or close below last week’s low of $57.74 targets $57.04. A close under $57.04 is needed for another wave of selling off. A close over $61.51 is needed to stop bear forces and a close over $63.70 alerts for a turn to higher prices.
December heating oil
The market is bearish and poised to test support at 16213. A close under 16213 targets 15864. Trade that is contained under 166 should encourage further selling off. A close above 17369 stops bear forces and a close above 17602 alerts for a turn to higher prices.
December unleaded gas
Last Thursday’s sharp market drop was negative. A close under 15106 is bearish and targets 14868 support. A close above 16050 is needed to embolden the bulls.
December natural gas
The market is building a bullish bias and only a close under 7705 voids the trend. A close above 8260 should encourage rallies to test 8503 resistance.
Ralph D. Preston IIIHeritage West Financial Inc.(858) 560-2646(800) 263-3004(858) 560-0704 faxrpreston@heritagewestfutures.comwww.heritagewestfutures.com
Past performance is not necessarily indicative of futures results. The risk of loss is present in trading futures and options.
