by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
AUGUST CRUDE OIL
August crude oil closed down $5.10 at $129.50 a barrel yesterday. Prices closed near the session low and hit a fresh five-week low yesterday. The past three days of losses are the largest three-day declines in the history of crude oil futures trading. Serious near-term chart damage has been inflicted to begin to suggest that at least a near- term market top is in place. The next upside price objective for the crude oil bulls is to produce a close above technical resistance at $135.00. The next downside price objective for the bears is producing a close below solid technical support at $125.00 a barrel. First resistance is seen at $132.50 and then at $133.50. First support is seen at yesterday’s low of $129.00 and then at $127.50.
Wyckoff’s Market Rating: 5.0
AUGUST HEATING OIL
August heating oil closed down 939 points at $3.7471 yesterday. Prices closed near the session low yesterday and hit a fresh three-week low. Bulls still have the overall technical advantage but are fading badly. The bulls’ next upside price objective is closing prices above technical resistance at $4.0000. Bears’ next downside price objective is producing a close below solid technical support at $3.7000. First resistance lies at $3.8000 and then at $3.8500. First support is seen at yesterday’s low of $3.7320 and then at $3.7000.
Wyckoff’s Market Rating: 6.0
AUGUST UNLEADED GAS
August (RBOB) unleaded gasoline closed down 1,144 points at $3.1650 yesterday. Prices closed nearer the session low yesterday and hit another fresh five-week low. Bulls but have faded badly this week as serious near-term chart damage has been inflicted. The next upside price objective for the bulls is closing prices above solid resistance at $3.3000. Bears’ next downside price objective is closing prices below solid support at the June low of $3.1475. First resistance is seen at $3.2000 and then at $3.2500. First support is seen at $3.1475 and then at $3.1000.
Wyckoff’s Market Rating: 5.0
AUGUST NATURAL GAS
August natural gas closed down 84.3 cents at $10.555 yesterday. Prices hit a fresh three-month low yesterday amid bearish “outside markets”–namely sharply lower crude oil prices.Serious chart damage has occurred to suggest a market top is in place. Prices are in a steep two-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above resistance at $11.00. The next downside price objective for the bears is closing prices below solid technical support at $10.00. First resistance is seen at $10.70 and then at $11.00. First support is seen at yesterday’s low of $10.464 and then at $10.25.
Wyckoff’s Market Rating: 4.0
