Last weeks biggest energy mover was a dramatic sell off in the natural gas market and with sentiment building look for continued selling this week in natural gas with a price target of 6727 as mild weather gives the bulls little room to run and the bears test the lower end of a multi month trading range.
August crude oil
The market remains in a wide three month trading range from $70 to $63 per barrel. Last week’s price action was unable to breech $70.00 resistance hinting that the market will search for support this week. First support target is $67.45. Steady trade above $67.45 should promote rallies to once again test $70.00. A close below $67.45 targets $66.00.
August heating oil
Last weeks pop higher and then reversal from $2.0757 per gallon hints at a test of weekly support at $1.9980. Stable trade above $1.9804 should promote further rallies that target $2.10. A close below $1.9980 negates the short-term drive to higher prices.
August Rbob unleaded gas
Price action continues to press up against recent swing highs. A close above $2.2547 per gallon keeps the bulls in firm control and targets $2.2750 with the possibility for a drive to $2.3247. A close below $2.20 damages the bull drive to higher prices.
August natural gas
Last weeks close under $7.445 per MMBtu unleashed bear forces. With a close below $7.242 the next support level is $6.990. Steady trade below $7.242 hold the potential for another leg down that targets $6.727. A close above $7.424 is needed to encourage a bout of buying.
Ralph D. Preston IIIHeritage West Financial Inc.
(800) 263-3004rpreston@heritagewestfutures.comwww.heritagewestfutures.com
Past performance is not necessarily indicative of futures results.The risk of loss is present in trading futures and options.
