Dec. 5, 2006 — Energy markets will focus on weather and potential OPEC cuts on its Dec. 14 meeting. Crude oil inventories fell 300,000 barrels to total 340.8 million for the week ended Nov. 24, according to the Energy Department. Another week of inventory declines should focus market attention on supply rather than demand.
January crude oil
A close above $63.85 resistance should embolden the bulls and target $65.00 per barrel plus. A close below $61.14 alerts for a test of key support at $60.12.
January heating oil
The market formed a 1-2-3 trend-reversing pattern and closed above the #2 point (1.8070) on November 29, which could have triggered a buy signal. Keep your stops. A dip below 1.6870 nullifies the formation.
January unleaded gas
The market has formed a 1-2-3 trend-reversing pattern and closed above the #2 point on Nov. 21, which could have triggered a trade. Keep your stops. A close above 171 positions the market for further advances. A close below 16246 cautions for pressured dips to 16000 support.
January natural gas
Price action is characterized by choppy sideways trading with no clear direction. Last week’s break to the downside nullifies any up trend that was developing. A close below 7928 or dip below 7900 is bearish. A close above 8790 is needed to reinvigorate the bulls and only a close over 9067 highlights a turn to higher prices.
Ralph D. Preston IIIHeritage West Financial, Inc.(858) 560-2646(800) 263-3004(858) 560-0704rpreston@heritagewestfutures.comwww.heritagewestfutures.com
Past performance is not necessarily indicative of futures results. The risk of loss is present in trading futures and options.
