ENERGY MARKETS
March crude oil closed higher on Thursday as it extends the rally off January’s low. Profit taking tempered early-session gains and today’s mid-range close sets the stage for a steady to lower opening when Friday’s night session begins. Stochastics and the RSI are diverging but remain neutral to bullish hinting that additional short-term gains are possible. If March renews the rally off January’s low, the 87% retracement level of the December-January decline crossing at 99.58 is the next upside target. Closes below the 20-day moving average crossing at 95.67 would confirm that a short-term top has been posted. First resistance is the 75% retracement level of the December-January decline crossing at 98.47. Second resistance is the 87% retracement level of the December-January decline crossing at 99.58. First support is Monday’s low crossing at 96.26. Second support is the 20-day moving average crossing at 95.67.
March heating oil closed slightly higher on Thursday. The mid-range close sets the stage for a steady opening when Friday’s night trading begins. Stochastics and the RSI are bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 297.06 would confirm that a short-term top has been posted while opening the door for additional weakness near-term. If March renews the rally off January’s low, the 87% retracement level of the December-January decline crossing at 306.94 is the next upside target. First resistance is last Friday’s high crossing at 305.90. Second resistance is the 87% retracement level of the December-January decline crossing at 306.94. First support is the 20-day moving average crossing at 297.06. Second support is January’s low crossing at 289.05.
March unleaded gas closed higher on Thursday as it extends the rally off Monday’s low. The high-range close sets the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above last Thursday’s high crossing at 269.65 are needed to confirm that a short-term low has been posted. If March renews the decline off December’s high, the 87% retracement level of the November-December rally crossing at 256.26 is the next downside target. First resistance is last Thursday’s high crossing at 269.65. Second resistance is the reaction high crossing at 278.43. First support is Monday’s low crossing at 259.42. Second support is the 87% retracement level of the November-December rally crossing at 256.26.
March Henry natural gas closed lower on Thursday following Wednesday’s downside reversal. Today’s close below the 10-day moving average crossing at 5.031 signaling that a short-term top might be in or is near. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are turning neutral to bearish signaling that a resumption of the rally off November’s low is possible. Closes below the 20-day moving average crossing at 4.578 would confirm that a short-term top has been posted. If March extends this winter’s rally, monthly resistance crossing at 6.108 is the next upside target. First resistance is Wednesday’s high crossing at 5.737. Second resistance is monthly resistance crossing at 6.108. First support is today’s low crossing at 4.896. Second support is the 20-day moving average crossing at 4.660.
