February crude oil was higher overnight as it extends the rally off December's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off December's low, October's high crossing at 94.87 then the 62% retracement level of the September-November decline crossing at 95.29 are the next upside targets. Closes below the 20-day moving average crossing at 91.26 are needed to confirm that a short-term top has been posted. First resistance is October's high crossing at 94.87. Second resistance is the 62% retracement level of the September-November decline crossing at 95.29. First support is the 10-day moving average crossing at 93.19. Second support is the 20-day moving average crossing at 91.26.
February heating oil was higher overnight due to short covering as it consolidates some of last Friday's decline. Stochastics and the RSI are diverging and have turned bearish signaling that sideways to lower prices are possible near-term. If February extends last week's decline, the reaction low crossing at 298.09 is the next downside target. Closes above last Thursday's high crossing at 311.37 are needed to renew the rally off December's low. First resistance is last Thursday's high crossing at 311.37. Second resistance is October's high crossing at 317.98. First support is the reaction low crossing at 298.09. Second support is December's low crossing at 290.27.
February unleaded gas was higher due to short covering overnight as it consolidated some of last week's decline. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. If February extends last week's decline, December's low crossing at 259.59 is the next downside target. Closes above the 10-day moving average crossing at 277.47 are needed to confirm that a short-term low has been posted. First resistance is the reaction high crossing at 281.36. Second resistance is September's high crossing at 286.60. First support is last Friday's low crossing at 271.80. Second support is December's low crossing at 259.59.
February Henry natural gas was higher overnight and trading above the 20-day moving average crossing at 3.340. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that additional strength is possible near-term. Closes above the 20-day moving average crossing at 3.340 are needed to confirm that a short-term top has been posted. If February renews the decline off November's high, September's low crossing at 3.200 is the next downside target. First resistance is the 20-day moving average crossing at 3.340. Second resistance is the reaction high crossing at 3.532. First support is the reaction low crossing at 3.087. Second support is this month's low crossing at 3.050.
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