ENERGY MARKETS
August crude oil posted an upside reversal on Monday due to short covering as it consolidated some of week’s decline. The high-range close sets the stage for a steady to higher opening when Tuesday’s night session begins. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If August extends the decline off June’s high, June’s low crossing at 91.50 is the next downside target. Closes above the 10-day moving average crossing at 96.58 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 96.58. Second resistance is last Wednesday’s high crossing at 99.21. First support is yesterday’s low crossing at 92.67. Second support is June’s low crossing at 91.50.
August heating oil closed higher due to short covering on Monday as it consolidated some of last week’s decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If August extends last week’s decline, June’s low crossing at 277.45 is the next downside target. Closes above the 10-day moving average crossing at 291.23 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 291.23. Second resistance is the 50% retracement level of the February-April decline crossing at 297.16. Second resistance is the 62% retracement level of the February-April decline crossing at 302.66. First support is yesterday’s low crossing at 282.10. Second support is June’s low crossing at 277.45.
August unleaded gas closed lower on Monday as it extends last Friday’s decline below the May-June uptrend line confirming that a trend change has taken place. The mid-range close sets the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If August extends this month’s decline, May’s low crossing at 265.60 is the next downside target. Closes above the 10-day moving average crossing at 281.93 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 281.93. Second resistance is June’s high crossing at 290.27. First support is yesterday’s low crossing at 270.25.Second support is May’s low crossing at 265.60.
August Henry natural gas closed lower on Monday as it extends the decline off last week’s high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If August renews the decline off May’s high, the 75% retracement level of this year’s rally crossing at 3.656 is the next downside target. Closes above the 20-day moving average crossing at 3.922 would confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 3.922. Second resistance is the reaction high crossing at 4.001. First support is the reaction low crossing at 3.729. Second support is the 75% retracement level of this year’s rally crossing at 3.656.
