by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
JULY CRUDE OIL
July crude oil closed down $4.72 at $131.96 a barrel yesterday. Prices closed near the session low and scored a bearish “outside day” down on the daily bar chart yesterday. A report that China has raised its government-controlled fuel prices by around 17% sunk the crude market yesterday. Recent price action has shown a marked increase in intra- day price volatility. That is a warning signal of a very mature market that could be close to a top. The next upside price objective for the crude oil bulls is to produce a close solid technical resistance at the contract high of $139.89. The next downside price objective for the bears is producing a close below solid technical support at $130.00 a barrel. First resistance is seen at $133.00 and then at $135.00. First support is seen at yesterday’s low of $131.48 and then at $130.00.
Wyckoff’s Market Rating: 7.5
JULY HEATING OIL
July heating oil closed down 1,460 points at $3.7140 yesterday. Prices closed near the session low and scored a bearish “outside day” down on the daily bar chart yesterday. Bulls still have the overall technical advantage, but faded yesterday. A bearish double-top reversal pattern could be forming on the daily bar chart. The bulls’ next upside price objective is closing prices above technical resistance at the contract high of $4.0338. Bears’ next downside price objective is producing a close below solid technical support at the June low of $3.5350. First resistance lies at $3.7500 and then at $3.8000. First support is seen at yesterday’s low of $3.7010 and then at $3.6500.
Wyckoff’s Market Rating: 7.5
JULY UNLEADED GAS
July (RBOB) unleaded gasoline closed down 1,142 points at $3.3525 yesterday. Prices closed near the session low yesterday and scored a bearish “outside day” down on the daily bar chart. Bulls still have the near-term technical advantage, but to not want to see a bearish weekly low close on Friday. The next upside price objective for the bulls is closing prices above solid resistance at the contract high of $3.5762. Bears’ next downside price objective is closing prices below solid support at $3.3000. First resistance is seen at $3.4000 and then at $3.4700. First support is seen at yesterday’s low of $3.3252 and then at $3.3000.
Wyckoff’s Market Rating: 7.5
JULY NATURAL GAS
July natural gas closed down 38.5 cents at $12.825 yesterday. Prices closed near the session low yesterday after setting another fresh contract high. Price action yesterday also scored a bearish “outside day” down on the daily bar chart. If there is solid follow-through selling pressure on Friday, then a bearish “key reversal” down would be confirmed, which would be an early technical clue that a market top is in place. The next upside price objective for the bulls is closing prices above resistance at yesterday’s contract high of $13.35. The next downside price objective for the bears is closing prices below solid technical support at $12.50. First resistance is seen at $13.00 and then at $13.25. First support is seen at yesterday’s low of $12.625 and then at $12.50.
Wyckoff’s Market Rating: 8.0
