Jan. 8, 2007 — Last week’s energy selloff keeps the bears in firm control. The market’s focus is on slackening demand due to mild weather through much of the North East. Look for energies to be pressured across the board this week as demand continues to trump supply and as the markets remain skeptical of OPEC production cuts.
February crude oil
The market is bearish, but a close below $54.85 per barrel is needed for further selling off to the low $50’s. Price action that is contained under $58.30 should remain negative and continue to sell off. A close above $59.32 is needed to embolden the bulls and turn to higher prices.
January heating oil
The market is bearish and poised for further selling off. A close below $1.50 to $1.49 per gallon projects declines to the low $1.40s and a close over $1.6700 is needed to embolden the bulls and encourage rallies over $1.70 plus.
February Rbob unleaded gas
The market is bearish. Price action that is contained under $1.5521 per gallon is negative. A close below $1.4600 weekly support should continue to sell off. While a close above $1.5521 is needed to embolden the bulls and turn trading to higher prices.
January natural gas
The market is bearish and a close below $5.982 per mBtu should continue to sell off with the possibility of an extreme spike to $5.500 to $5.300. A close above $7.170 is needed to stop forces and turn to higher prices.
Ralph D. Preston IIIHeritage West Financial Inc.(858) 560-2646(800) 263-3004(858) 560-0704 faxrpreston@heritagewestfutures.comwww.heritagewestfutures.com
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