by Jim Wyckoff, Senior Analyst TraderPlanet.com
JANUARY CRUDE OIL
January crude oil closed up $2.74 at $90.23 a barrel today. Prices closed near the session high today after hitting a fresh six-week low early on today. Price action today scored a bullish “outside day” up on the daily bar chart. Short covering was featured today and strong follow-through buying on Friday would give the bulls fresh confidence. Look for more high volatility both on the upside and on the downside. The next downside price objective for the bears is producing a close below solid technical support at today’s low of $85.82 a barrel. First resistance is seen at $91.00 and then at $92.00. First support is seen at $90.00 and then at $89.00.
Wyckoff’s Market Rating: 6.5.
JANUARY HEATING OIL
January heating oil closed up 557 points at $2.5450 today. Prices closed near the session high after hitting a fresh five-week low early on. Short covering was featured. Some near-term chart damage has occurred recently. Bulls do still have the overall near-term technical advantage. Their next upside price objective is closing prices above solid resistance at $2.6000. Bears’ next downside price objective is producing a close below solid technical support at today’s low of $2.4450. First support lies at $2.5250 and then at $2.5000. First resistance is seen at $2.5750 and then at $2.6000.
Wyckoff’s Market Rating: 6.0.
JANUARY RBOB UNLEADED GAS
January (RBOB) unleaded gasoline closed up 843 points at $2.3013 today. Prices closed near the session high and scored a bullish “outside day” up on the daily bar chart. Prices early on hit a fresh six-week low. Short covering was featured today. Some chart damage has occurred recently. The next upside price objective for the bulls is closing prices above resistance at $2.3750. Bears’ next downside price objective is closing prices below support at today’s low of $2.1875. First resistance is seen $2.3250 and then at $2.3500. First support is seen at $2.2750 and then at $2.2500.
Wyckoff’s Market Rating: 6.5.
JANUARY NATURAL GAS
January natural gas closed up 14.5 cents at $7.33 today. Prices closed nearer the session high today on more short covering in a bear market. The bears still have the near- term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at the September low of $7.561. The next downside price objective for the bears is closing prices below solid technical support at $7.00. First resistance is seen at today’s high of $7.445 and then at $7.561. First support is seen at today’s low of $7.175 and then at this week’s low of $7.038 and then at $7.00.
Wyckoff’s Market Rating: 2.0.
