Monday’s broad based energy rally across the board has shifted market sentiment to a bullish posture. Look for further gains in the energies before this week is over on the back of tightening supplies and continued saber rattling out of the Middle East.
November Crude Oil
Monday’s $2.00 plus per barrel advance highlights a breakout from the markets recent trading range. The market is bullish and poised for further advances. Stable trade above $84.00 per barrel keeps the bulls in charge and encourages another wave of buying targeting $88.00. A dip below $82.50 is negative but only a close below $81.40 damages the technical trend higher.
November Heating Oil
Monday’s surge higher highlights a breakout from the markets recent trading range. Price action is bullish and positioned for another wave of buying targeting $2.35 per gallon or more. Stable trade above $2.27 should encourage rallies to search out new contract highs.
November Rbob Unleaded Gas
Monday’s close above the previous contract high indicates that the market is building momentum for further rallies. Stable trade above $2.10 per gallon should promote rallies to attack $2.20 plus. A dip below $2.08 is negative for the breakout but only a close under $2.03 nullifies the rally.
October Natural Gas
Monday’s spike higher and close above $7.20 per mmbtu resistance emboldens the bulls marking a turn to higher prices. Stable trade above $7.20 encourages the market to rally targeting 7.68. A close below $6.98 is negative while a close under $6.75 is bearish and hints at further losses to $6.50.
Ralph D. Preston IIIHeritage West Financial, Inc.Phone: 858-560-2646Toll Free: 800-263-3004Fax: 858-560-0704Email: rpreston@heritagewestfutures.comWebsite: www.heritagewestfutures.com
Past performance is not necessarily indicative of futures results.The risk of loss is present in trading futures and options.
