A quick look at Friday: bearish sentiment ensured NY Heating Oil finished Friday's session lower. However, despite the downward bias, NYMEX Heating Oil etched out a distinct $3.16 to $3.27 session range.
- Friday's 0.69% loss extends a 12 day bearish run in which NY Heating Oil had already lost 51.41 cents from its share value.
Heating Oil has shed 26.7% over the past three months.
A study of NYMEX Heating Oil's chart reveals various key levels to watch: Heating Oil could begin to recover as it approaches significant support, now 5 cents away from $3.13. Dipping below could be an indication that further losses are ahead. Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Heating Oil Futures formed a session range of $3.16 to $3.27 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $3.18. Analysis based on the asset volatility indicates that Bollinger bands shows an indication of recovery: the lower band is at $3.13, a low enough level to, generally, suggest that Heating Oil is trading below its value.
Overall, the technical outlook suggests NY Heating Oil is likely to remain muted for the immediate future, with no clear-cut direction.
NYMEX Heating Oil's value drop coincided with the fact that after ending Friday's session at $8.32, Natural Gas lost 50.7 cents and is trading around $7.82.
Though NYMEX Heating Oil has been dropping, other Energy have been performing better: Brent Crude Oil is trading around $91.58 after ending Friday's session at $90.84 (up 0.81% today).
Also Friday, a flat day for Crude Oil, closing at $85.48.
Muted session threatens to disturb West Texas crude's ongoing uptrend
West Texas crude is now trading at $88.18 per barrel after tracing out a steady $88.09 – $88.6 range today.
- While flat so far today, WTI crude oil is on a 3 day bullish trend, gaining a total of $8.79 throughout.
Crude Oil made an initial breakout above its 50 day Simple Moving Average at $88.29, a potential indicator of a newly emerging bullish phase. Despite this, WTI crude oil's upper Bollinger band is at $90.75, suggesting that a downward move may follow.
Overall, looking at the technical analysis landscape, it seems WTI crude might be pointing upward in the short term.
Meanwhile, mixed performances are seen in other Energy as Brent Crude Oil moves 0.31% to trade around $93.66.
Approximately 6 months ago, West Texas crude reached a significant high of $124.77 but has struggled to hold onto its gains and declined 29.25% since then.
NY Heating Oil remains on-trend despite dull session
A mostly flat day so far for NYMEX Heating Oil, ranging between $3.68 and $3.71; currently at $3.69 per gallon.
- While flat so far today, NYMEX Heating Oil is on a 7 day bullish trend, gaining a total of 55.78 cents throughout.
Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. After descending below strong Fibonacci support at $3.7, market bears have earmarked $3.6 as the next downside target. Asset volatility analysis shows that NY Heating Oil's upper Bollinger band is at $3.7, suggesting that a downward move may follow. As the day gets underway, chart analysis suggests NY Heating Oil's nearest support level is at $3.41.
Overall, while NY Heating Oil has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Meanwhile, mixed performances are seen in other Energy as Brent Crude Oil moves 0.42% to trade around $93.76. Natural Gas moves 0.45% to trade around $6.96.
Approximately 5 months ago, NYMEX Heating Oil reached a significant high of $4.94 but has struggled to hold onto its gains and declined 25.43% since then.
NYMEX Gas dull so far today at $6.44, while in the midst of a bearish run
A mostly flat day so far for Natural Gas, ranging between $6.31 and $6.54; currently at $6.44 per MMBtu.
- While flat so far today, NYMEX Natural Gas is on a 14 day bearish trend during which it lost $2.64 of its value.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the Relative Strength Index indicates NYMEX Natural Gas is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. Analysis based on the asset volatility indicates that US Natural Gas's upper Bollinger band is at $8.91 and the lower is $6.07. Analysis of US Natural Gas's recent price action suggests US Natural Gas is approaching key support, around 20 cents away from $6.24. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
The current technical outlook indicates US Natural Gas will continue to ebb sideways within tight ranges for the immediate future.
Meanwhile, mixed performances are seen in other Energy as Heating Oil is up 2.69%. Crude Oil is up 1.77%. Brent Crude Oil ascends 1.51% to trade around $90.2.
A month ago US Natural Gas reached a significant high of $9.68 but has consequently lost 33.16% since then.