Market attention is beginning to shift and focus on the prospects for further inventory declines. Iran, OPEC’s second largest oil producer, ignored a United Nations Security Council resolution ordering it to halt uranium enrichment by Feb. 21, raising the probability for a showdown and increasing the odds that oil would be used as a weapon in retaliation for U.N. sanctions.
April crude oil
A close over $62.57 per barrel is needed to unleash another wave of buying keeping the bulls in firm control and targets $63.50. Price action that is unable to breakout past last weeks high should pull back to $60.00 support. A close under $59.99 is negative for the bull formation currently in place but only a close under $59.00 validates a sell off to below $58.00.
April heating oil
Overall the market is bullish with a close above $1.78 per gallon needed to extend rallies to $1.80-$1.84 plus. Trade that is contained below $1.78 hints at a test of $1.6911 support. A close below $1.69 targets $1.67 support.
April Rbob unleaded gas
Overall the market is bullish although Friday’s spike higher and then reversal cautions for a test of $1.73 per gallon support. A dip below $1.84 is negative for the bull trend and a close below $1.83 emboldens the bears.
April natural gas
With trade unable to push above $7.899 per MMBtu, the market is turning over to test $7.400 support. A close below $7.400 targets $6.985 and puts the bears in firm control. A close above $7.615 is needed to rekindle bull forces.
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.
