In light of a weakening U.S. dollar and a possible conflict in Northern Iraq, which holds 40% of Iraq’s oil reserves, energies are rallying across the board. Crude oil is leading the pack and $100 per barrel crude appears more and more likely.
December crude oil
The market is bullish and poised for further advances. Stable price action above $90.57 per barrel indicates a likely retest of the $93.78 high. A pop over $93.80 encourages another leg up to $95.00 and beyond. A dip below $90.50 is negative for the bulls but only a close below $87.48 marks a top.
December heating oil
The market is bullish and poised for further advances. Stable price action above $2.41 per gallon should build for continued rallies this week. A push above Monday’s high of $2.47 would send heating oil to $2.50, if resistance at $2.50 is broken a longer bull move is signaled. A dip below $2.41 is negative for the bulls but only a close below $2.37 marks a top and emboldens the bears.
December Rbob unleaded gas
The market is on fire and poised for continued rallies this week. Stable trade above $2.26 per gallon should build for further advances. A close above $2.35 encourages another leg up targeting $2.40. A dip under $2.26 is negative for the bulls but only a close under $2.19 marks a top and emboldens the bears.
December natural gas
Overall the market is in a trading range and attempting to muscle higher. A close above $8.150 per mMbtu hints at further advances targeting $8.260. A pop over $8.260 encourages a challenge of $8.475 resistance. A close below $8.00 is negative for the bulls but only a close below $7.700 hints at lower prices and emboldens the bears.
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.
