With the exception of natural gas, energy markets are in the midst of attempting to muscle higher after last weeks shake out. Look for prices to close the week strong and follow through with continued rallies into next week as prices drift higher.
January crude oil
Price action is muscling higher. Stable trade above $95.95 per barrel should build for attacks on $97.67 contract high. A drop under $92.70 damages the bull alignment but only a close below $90.50 emboldens the bears.
December heating oil
The market is bullish. Stable trade above $2.63 per gallon should build for further rallies. A push over $2.67 alerts for a blow off top into new highs. A dip below $2.56 damages the bull alignment but only a close under $2.52 emboldens the bears.
December Rbob unleaded gas
The market is caught between bull and bear forces. A close over $2.42 per gallon is needed to embolden the bulls while a close below $2.31 alerts for a leg down in the market targeting $2.20.
December natural gas
Overall price action is in a multi month trading range and pressing support levels. A dip below $7.89 targets $7.55. A close over $8.50 is needed reversing turn to higher prices.
Ralph D. Preston IIIHeritage West Financial Inc.
www.heritagewestfutures.com
Past performance is not necessarily indicative of futures results. The risk of loss is present in trading futures and options.
