In the absence of any fundamentally shifting market news, energy markets should be trading off technicals. The Energy Department reported last week that crude oil and fuel stockpiles are higher than the yearly average.
March crude oil
Overall, the market is bearish, but a pop over last week’s high of $55.82 per barrel is needed to accelerate price gains, while a close above $57.32 would embolden the bulls and target $59.60. A dip below $53.20 or close below $52.60 should initiate further sell offs to test the $51.75 resistance level.
March heating oil
Overall, the market is bearish, but a close over last weeks high of $1.6110 per gallon is positive and targets $1.64 resistance. A close above $1.64 would embolden the bulls and projects trade to the high $1.60’s. A close below $1.5595 keeps the bears in firm control.
March Rbob unleaded gas
Overall the market remains bearish, but a close over last weeks high of $1.53 per gallon is positive and voids bear forces. A close under $1.45 keeps the bears in firm control.
March natural gas
The market is staging a break out from a multi week channel. The advance targets resistance at $7.838 per MMBtu. A close above $8.000 alerts for a larger bull trend. Be on guard for price action to struggle against $7.838. A close below $6.975 hurts bull forces and a close below $6.600 alerts for a turn to basing lows.
Ralph D. Preston III
Heritage 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.
