January crude oil was slightly higher overnight as it extends the trading range of the past six weeks. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 89.80 are needed to confirm that a short-term low has been posted. If January renews the decline off September's high, the 87% retracement level of the June-September rally crossing at 82.36 is the next downside target. First resistance is the reaction high crossing at 89.80. Second resistance is the reaction high crossing at 93.98. First support is the reaction low crossing at 84.53. Second support is the 87% retracement level of the June-September rally crossing at 82.36.
January heating oil was slightly higher overnight while extending the trading range of the past six weeks. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. If January renews November's rally, the reaction high crossing at 318.00 is the next upside target. Closes below the 20-day moving average crossing at 302.66 would confirm that a short-term top has been posted while opening the door for sideways to lower prices into early-December. First resistance is November's high crossing at 318.00. Second resistance is October's high crossing at 321.44. First support is the 20-day moving average crossing at 302.66. Second support is November's low crossing at 293.87. Continue reading "Monday Morning Energy Commentary"
