ENERGY MARKETS
September crude oil closed higher due to short covering on Wednesday as
it consolidates some of the decline off July’s high. The high-range
close sets the stage for a steady to higher opening when Thursday’s
night session begins. Stochastics and the RSI remain bearish signaling
that sideways to lower prices are possible near-term. If September
extends the decline off July’s high, the 38% retracement level of the
April-July rally crossing at 100.27 is the next downside target. Closes
above the 10-day moving average crossing at 105.82 would confirm that a
short-term low has been posted. First resistance is the 10-day moving
average crossing at 105.82. Second resistance is July’s high crossing at
108.93. First support is Tuesday’s low crossing at 102.67. Second
support is the 38% retracement level of the April-July rally crossing at
100.27.
September heating oil posted a key reversal up on Wednesday as it
consolidated some of the decline off July’s high. The high-range close
sets the stage for a steady to higher opening on Thursday. Stochastics
and the RSI are neutral to bearish signaling that sideways to lower
prices are possible near-term. If September extends the decline off
July’s high, the reaction low crossing at 297.08 is the next downside
target. Multiple closes above the 10-day moving average crossing at
305.15 would confirm that a short-term low has been posted. First
resistance is the 10-day moving average crossing at 305.15. Second
resistance is July’s high crossing at 313.22. First support is today’s
low crossing at 297.72. Second support is the 50% retracement level of
the April-July rally crossing at 294.45.
September unleaded gas posted a key reversal up on Wednesday as it
consolidated some of the decline off July’s high. The high-range close
sets the stage for a steady to higher opening when Thursday’s night
session begins trading. Stochastics and the RSI remain bearish signaling
that sideways to lower prices are possible near-term. Closes below the
20-day moving average crossing at 298.27 are needed to confirm that a
short-term top has been posted. Closes above the 10-day moving average
crossing at 301.10 would confirm that a short-term low has been posted.
If September renews the rally off June’s low, monthly resistance
crossing at 321.88 is the next upside target. First resistance is the
10-day moving average crossing at 301.10. Second resistance is July’s
high crossing at 309.17. First support is the 20-day moving average
crossing at 298.27. Second support is the 38% retracement level of the
June-July rally crossing at 290.90.
September Henry natural gas closed higher due to short covering on
Wednesday as it consolidates some of this decline off May’s high. The
mid-range close sets the stage for a steady opening on Thursday.
Stochastics and the RSI are oversold but remain neutral to bearish
signaling that sideways to lower prices are possible near-term. If
September extends the aforementioned decline, January’s low crossing at
3.350 is the next downside target. Closes above the 20-day moving
average crossing at 3.645 would confirm that a short-term low has been
posted. First resistance is the 20-day moving average crossing at 3.645.
Second resistance is July’s high crossing at 3.833. First support is
Tuesday’s low crossing at 3.418. Second support is January’s low
crossing at 3.350.
