ENERGY MARKETS
October crude oil closed lower on Monday as it extended the decline off June’s high. The mid-range close sets the stage for a steady opening when Tuesday’s night session begins. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If October extends the decline off June’s high, the 38% retracement level of the 2009-2011-rally crossing at 90.62 is the next downside target. Closes above the reaction high crossing at 96.00 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 96.00. Second resistance is August’s high crossing at 97.75. First support is today’s low crossing at 91.80. Second support is the 38% retracement level of the 2009-2011-rally crossing at 90.62.
October heating oil closed lower on Monday as it extends this year’s decline. The mid-range close sets the stage for a steady opening when Tuesday’s night trading begins. Stochastics and the RSI have turned neutral to bearish signaling that sideways to lower prices are possible near-term. If October extends this summer’s decline, last June’s low crossing at 277.50 is the next downside target. Closes above the reaction high crossing at 289.05 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 289.05. Second resistance is August’s high crossing at 292.28. First support today’s low crossing at 278.82. Second support is last June’s low crossing at 277.50.
October unleaded gas closed lower on Monday. The mid-range close sets the stage for a steady opening when Tuesday’s night session begins trading. Stochastics and the RSI have turned neutral to bearish signaling that sideway to lower prices are possible near-term. Closes below August’s low would open the door for a possible test of the 62% retracement level of the 2012-2014-rally crossing at 242.55. If October resumes the rally off August’s low, August’s high crossing at 266.34 is the next upside target. First resistance is August’s high crossing at 266.34. Second resistance is the reaction high crossing at 270.85. First support is August’s low crossing at 251.86. Second support is the 62% retracement level of the 2012-2014-rally crossing at 242.55.
October Henry natural gas posted a key reversal up due to short covering on Monday as it consolidates some of the decline off the late-August high. The high-range close sets the stage for a steady to higher opening when Tuesday’s session begins trading. Stochastics and the RSI are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 10-day moving average crossing at 3.927 are needed to confirm that a short-term low has been posted. If October extends the aforementioned decline, July’s low crossing at 3.740 is the next downside target. First resistance is the 10-day moving average crossing at 3.927. Second resistance is the late-August high crossing at 4.101. First support is August’s low crossing at 3.760. Second support is July’s low crossing at 3.740.
