by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER CRUDE OIL
October crude oil closed down $2.55 at $115.60 a barrel yesterday. Prices closed nearer the session low yesterday and scored a bearish “outside day” down on the daily bar chart. As Hurricane Gustav is forecast to hit the heart of U.S. oil production facilities in the Gulf of Mexico late this coming weekend or early next week, the crude oil market sold off yesterday. That’s a significantly bearish clue that prices are headed lower if there is no serious damage inflicted on the oil infrastructure from this hurricane. The next upside price objective for the crude oil bulls is to produce a close above solid technical resistance at $120.00. The next downside price objective for the bears is producing a close below solid technical support at the August low of $111.50 a barrel. First resistance is seen at $117.50 and then at $120.00. First support is seen at yesterday’s low of $114.08 and then at this week’s low of $112.36.
Wyckoff’s Market Rating: 5.0.
OCTOBER HEATING OIL
Octoberheating oilclosed down 765 points at $3.2050 yesterday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart yesterday. The bulls’ next upside price objective is closing prices above technical resistance at last week’s high of $3.3760. Bears’ next downside price objective is producing a close below solid technical support at the August low of $3.0540. First resistance lies at $3.2500 and then at 3.3000. First support is seen at yesterday’s low of $3.1655 and then at this week’s low of $3.1327.
Wyckoff’s Market Rating: 5.0.
OCTOBER UNLEADED GAS
October (RBOB) unleaded gasoline closed down 524 points at $2.8648 yesterday. Prices closed nearer the session low yesterday and scored a bearish “outside day” down on the daily bar chart yesterday. Prices did hit a fresh four-week high early on. The next upside price objective for the bulls is closing prices above solid technical resistance at yesterday’s high of $2.9850. Bears’ next downside price objective is closing prices below solid support at the August low of $2.7014. First resistance is seen at $2.9000 and then at $2.9500. First support is seen at yesterday’s low of $2.8045 and then at $2.7500.
Wyckoff’s Market Rating: 5.0.
OCTOBER NATURAL GAS
Octobernatural gasclosed down 48.9 cents at $8.119 yesterday. Prices closed nearer the session low yesterday, scored a bearish “outside day” down on the daily bar chart and hit a fresh nine-month low.Traders chose to ignore Hurricane Gustav bearing down on the Gulf of Mexico. That shows the bears have the solid technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at this week’s high of $8.88. The next downside price objective for the bears is closing prices below solid technical support at yesterday’s low of $7.722. First resistance is seen at $8.25 and then at $8.50. First support is seen at $8.000 and then at $7.722.
Wyckoff’s Market Rating: 2.0.
