Prices in the crude oil market are within striking distance of $100 per barrel. With the exception of natural gas, energy markets are poised to continue making new highs this week on the back of a weakening U.S. currency and continued saber rattling from the Middle East.
January crude oil
Price action is bullish and aligned for further advances. A pop over $99.29 per barrel emboldens the bulls to stretch the rally over $100 plus. A close above $101 could set the market on fire targeted $104-$105. A close under $95.25 hints at a failed breakout and targets $92.50 support.
January heating oil
Price action is bullish and aligned to continue making new highs. Stable trade above $2.64 per gallon should encourage an attack on $2.7392. A close above $2.7392 could ignite rallies targeting $2.78 to $2.80. A close below $2.64 hints at a failing breakout and a turn to lower prices targeting $2.57 support.
January Rbob unleaded gas
Overall the market is bullish although be on guard for a reversal with price stuck up against resistance at $2.49 per gallon. Stable trade over $2.40 should build for aggressive attacks on $2.49. A close or pop above $2.49 should ignite another wave of buying. A dip or close under $2.40 hurts bull forces and targets $2.30. A close below $2.30 hints at reversal and turn to lower prices.
January natural gas
Prices continue to bounce between multi month support and resistance. Friday’s key reversing turn off of support hints at a challenge of $8.460 per mmBtu resistance.
Ralph D. Preston IIIHeritage West Financial Inc.
rpreston@heritagewestfutures.comwww.heritagewestfutures.com
Past performance is not necessarily indicative of futures results. The risk of loss is present in trading futures and options.
