by Jim Wyckoff, Senior Analyst, TradingEducation.com, LLC
DECEMBER CRUDE OIL
December crude oil closed up $2.64 at $58.80 a barrel yesterday. Prices closed near the session high yesterday on short covering in a bear market. Prices early on hit a fresh 22-month low of $54.67 a barrel. Crude oil bears still have the near-term technical advantage. However, the market is still due for more of a short-covering bounce very soon. Prices remain in a 3.5-month-old downtrend on the daily bar chart. The next downside price objective for the crude oil bears is to produce a close below technical support at $50.00. The next upside price objective for the bulls is producing a close above technical resistance at $65.00 a barrel. First resistance is seen at $60.00 and then at $61.00. First support is seen at $57.50 and then at $56.00.
Wyckoff’s Market Rating: 2.0
DECEMBER HEATING OIL
December heating oil closed up 621 points at $1.8975 yesterday. Prices closed near the session high yesterday on short covering after hitting a fresh contract low early on. Bears still have the solid near-term technical advantage. A 3.5-month- old downtrend is in place on the daily bar chart. The bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $2.0940. Bears’ next downside price objective is producing a close below solid technical support at $1.7500. First resistance lies at $1.9500 and then at 2.0000. First support is seen at $1.8500 and then at yesterday’s contract low of $1.7919.
Wyckoff’s Market Rating: 1.5
DECEMBER RBOB UNLEADED GASOLINE
December (RBOB) unleaded gasoline closed up 619 points at $1.3100 yesterday. Prices closed near the session high on short covering in a bear market after hitting another fresh contract low early on yesterday. The bears are still in solid technical control. Prices are still in a 3.5-month-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above technical resistance at this week’s high of $1.4421. Bears’ next downside price objective is closing prices below solid support at $1.2000. First resistance is seen at $1.3500 and then at $1.4000. First support is seen at $1.2500 and then at yesterday’s contract low of $1.2100 and then at $1.2000.
Wyckoff’s Market Rating: 1.5
DECEMBER NATURAL GAS
December natural gas closed down 0.9 cent at $6.396 yesterday. Prices closed near the session high and did hit a fresh contract low yesterday. The bears still have the near-term technical advantage and have regained downside momentum this week. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $7.36. The next downside price objective for the bears is closing prices below solid technical support at yesterday’s contract low of $6.084. First resistance is seen at $6.50 and then at $6.789. First support is seen at yesterday’s contract low of $6.084 and then at $6.00.
Wyckoff’s Market Rating: 1.0
