January crude oil
Price action continues to be caught between aggressive bull and bear forces, although last week’s spike to $95.05 per barrel hints at renewed rallies into this week. Stable trade above $89.50 should build for further advances. A push over $95.05 is bullish and targets $98 plus. A close under $89.20 is needed to embolden the bears and carry prices lower. Look for continued consolidation along the $89.00 to $90.00 area over the coming days to set the stage for another wave of buying.
January heating oil
Last weeks surge higher alerts for follow through rallies to attack November’s high of $2.74 per gallon. Stable price action above $2.58 should build for further advances. A push over $2.67 sets the stage for aggressive attacks on $2.74. A dip under $2.58 is negative but only a close below $2.52 emboldens the bears and hints at prices trending lower.
January Rbob unleaded gas
Last weeks surge higher alerts for follow through rallies to attack November’s high of $2.4868 per gallon. Stable trade over $2.3310 should build for further advances. A push over 24182 sets the stage for aggressive attacks on $2.4864 resistance. A dip under $2.33 is negative for the bulls but only a close below $2.2765 emboldens the bears and hints at lower prices.
January natural gas
Overall, the market is bearish. A dip or close below $6.909 per mmBtu should open the door to another bout of selling targeting $6.818 weekly support. Sideways trade should consolidate for further selling off. Price action may attempt to muscle higher from $7.00 support; but a close over $7.348 is needed for aggressive buying and a close above $7.560 alerts for a 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.
