Nov. 29, 2006 — With U.S. oil inventories well supplied and above their five-year average, energy markets will focus on weather and potential OPEC cuts on its Dec. 14 meeting.
January crude oil
Overall the market is bearish. A dip or close below $57.74 targets $57.04. A close under $57.04 is needed for another leg down. A close over $61.51 is needed to stop bear forces and a close over $63.70 alerts for a turn to higher prices.
January heating oil
The market has formed a 1-2-3 trend-reversing pattern. A dip below 1.6870 nullifies the formation and a close above 1.8070 triggers a buy signal.
January unleaded gas
The market has formed a 1-2-3 trend-reversing pattern and is in the midst of congestion that is poised for bull advances. A close above 1.6150 triggers a buy signal and projects an advance to 171. A close below 15542 cautions for pressured dips to 15311.
January natural gas
The market’s up swing has stalled and recent sideways trading cautions for a test of 7928 support. A close below 7928 or dip below 7900 is bearish. A close above 8453 is needed to reinvigorate the bulls.
Ralph D. Preston III
Heritage West Financial Inc.
(858) 560-2646(8000 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.
