by Jim Wyckoff, Senior Analyst, TraderPlanet.com
NOVEMBER CRUDE OIL
November crude oil closed down $3.90 at $70.67 a barrel yesterday. Prices closed nearer the session low yesterday and hit a fresh 14-month low amid a stronger U.S. dollar and worldwide recession worries. Bears still have the near- term technical advantage in crude. However, the market is now short-term oversold, technically, and due for an upside bounce soon. Prices remain in a three-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 $65.00. The next upside price objective for the bulls is producing a close above technical resistance at $80.00 a barrel. First resistance is seen at $72.50 and then at yesterday’s high of $74.50. First support is seen at yesterday’s low of $68.57 and then at $67.50.
Wyckoff’s Market Rating: 2.0
NOVEMBER HEATING OIL
November heating oil closed down 817 points at $2.1088 yesterday. Prices closed nearer the session low and hit a fresh 13-month low yesterday. Bears still have the near-term technical advantage, but the market is oversold. The bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $2.4201. Bears’ next downside price objective is producing a close below solid technical support at $2.0000. First resistance lies at $2.1500 and then at yesterday’s high of 2.1885. First support is seen at yesterday’s low of $2.0510 cents and then at $2.0000.
Wyckoff’s Market Rating: 2.0
NOVEMBER (RBOB) UNLEADED GASOLINE
November (RBOB) unleaded gasoline closed down 1,307 points at $1.6515 yesterday. Prices closed nearer the session low and hit another fresh 19-month low yesterday. Bears are still in technical control, but the market is now oversold. The next upside price objective for the bulls is closing prices above technical resistance at $2.0000. Bears’ next downside price objective is closing prices below solid support at $1.6000. First resistance is seen at $1.7000 and then at $1.7500. First support is seen at yesterday’s low of $1.5964 and then at $1.5500.
Wyckoff’s Market Rating: 1.5
NOVEMBER NATURAL GAS
November natural gas closed up 17.8 cents at $6.77 yesterday. Prices closed near the session high after hitting a fresh contract low yesterday. Prices also scored a bullish “outside day” up on the daily bar chart. Short covering in a bear market was featured yesterday. Bears remain in technical control of nat gas. The next upside price objective for the bulls is closing prices above solid technical resistance at $7.500. The next downside price objective for the bears is closing prices below psychological support at $6.000. First resistance is seen at $7.00 and then at $7.25. First support is seen at yesterday’s contract low of $6.436 and then at $6.25.
