by Jim Wyckoff, Senior Analyst TraderPlanet.com
JANUARY CRUDE OIL
January crude oil closed up $0.39 at $91.01 a barrel today. Prices closed nearer the session low today after a spike higher overnight following news that a major pipeline in the U.S. was on fire. But as the day wore on prices eroded. Near-term chart damage has occurred this week to begin to suggest that a market top is in place. The rebound in the value of the U.S. dollar this week is also bearish for crude. Look for more high volatility both on the upside and on the downside. Crude oil bulls still have the overall technical advantage, but are fading. The next downside price objective for the bears is producing a close below solid technical support at the November low of $89.13 a barrel. First resistance is seen at $92.00 and then at $93.00. First support is seen at this week’s low of $90.33 and then at $90.00.
Wyckoff’s Market Rating: 6.5.
JANUARY HEATING OIL
January heating oil closed up 13 points at $2.5791 today. Prices closed near the session low today. No serious chart damage has occurred this week, but strong follow-through selling on Friday, including a bearish weekly low close, would likely produce chart damage. Bulls still have the overall technical advantage. Their next upside price objective is closing prices above solid resistance at the contract high of $2.7385. Bears’ next downside price objective is producing a close below solid technical support at $2.5000. First support lies at today’s low of $2.5700 and then at $2.5500. First resistance is seen at $2.6000 and then at $2.6300.
Wyckoff’s Market Rating: 7.0.
JANUARY RBOB UNLEADED GASOLINE
January (RBOB) unleaded gasoline closed down 67 points at $2.2657 today. Prices closed near the session low today and hit another fresh four-week low. Chart damage has occurred this week and bulls are fading. The next upside price objective for the bulls is closing prices above resistance at $2.4000. Bears’ next downside price objective is closing prices below support at $2.2500. First resistance is seen at $2.3000 and then at $2.3300. First support is seen at today’s low of $2.2600 and then at $2.2500.
Wyckoff’s Market Rating: 6.0.
JANUARY NATURAL GAS
January natural gas closed down 3.4 cents at $7.452 today. Prices closed nearer the session low and closed at the lowest closing level in 30 months today. 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 $7.75. The next downside price objective for the bears is closing prices below solid technical support at $7.25. First resistance is seen at today’s high of $7.676 and then at $7.75. First support is seen at today’s low of $7.38 and then at $7.30.
Wyckoff’s Market Rating: 1.0.
