by Jim Wyckoff, Senior Analyst TraderPlanet.com
FEBRUARY CRUDE OIL
February crude oil closed higher on Thursday as it extended this week’s rally and closed above minor resistance crossing at 94.72. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If February extends this week’s rally, November’s high crossing at 98.12 is the next upside target. Closes below the 20-day moving average crossing at 91.04 would temper the near-term friendly outlook in the market. A close below the reaction low crossing at 85.60 would renew the decline off November’s high. First resistance is today’s high crossing at 97.79. Second resistance is November’s high crossing at 98.12. First support is the 10-day moving average crossing at 92.77 then the 20-day moving average crossing at 91.04.
FEBRUARY HEATING OIL
February heating oil closed higher on Thursday and above the previous reaction high crossing at 266.00 thereby renewing the rally off this month’s low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends this month’s rally, November’s high crossing at 272.17 is the next upside target. Closes below the 20-day moving average crossing at 256.41 would confirm that a short-term top has been posted. Closes below the reaction low crossing at 243.88 would renew the decline off November’s high. First resistance is today’s high crossing at 269.43. Second resistance is November’s high crossing at 272.17. First support is the 10-day moving average crossing at 260.57. Second support is the 20-day moving average crossing at 256.41.
FEBRUARY UNLEADED GAS
February unleaded gas closed sharply higher for the second day in a row on Thursday and above November’s high crossing at 249.95 thereby renewing this year’s rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If February extends today’s rally, upside targets will be hard to project with February now trading into uncharted territory. Closes below the 20-day moving average crossing at 234.96 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 253.10. First support is the 10-day moving average crossing at 240.03. Second support is the 20-day moving average crossing at 234.96.
FEBRUARY NATURAL GAS
February Henry natural gas closed slightly higher on Thursday but remains below the 10-day moving average crossing at 7.224. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If February renews the decline off November’s high, weekly support crossing at 6.801 is the next downside target. Closes above the reaction high crossing at 7.608 are needed to confirm that a short-term low has been posted. First resistance is today’s high crossing at 7.380 then the reaction high crossing at 7.608. First support is today’s low crossing at 6.950 then weekly support crossing at 6.801.
