RBOB Gasoline Futures Oscillating in Coil Pattern
Since mid-March prices for the May RBOB Gasoline futures contract have oscillated in a narrowing range and formed a coil pattern. Coils are patterns that indicate market indecisiveness, which has definitely been the case for the entire crude oil infrastructure since the beginning of the year. Coils are not as reliable as flags, pennants, and … Continue reading RBOB Gasoline Futures Oscillating in Coil Pattern
Midweek Natural Gas Forecast – April 8, 2015
From day-to-day natural gas prices are oscillating back and forth on short term speculation and headlines. At one moment we read that the weather forecast is cooler than normal for the next few weeks and then a headline says the forecast is normal. In addition, rig counts are down, but the rate at which they … Continue reading Midweek Natural Gas Forecast – April 8, 2015
WTI-Brent Spread Narrowing
The WTI-Brent spread narrowed to ($5.81) on Monday and will likely continue to narrow over the next few days as it approaches a key threshold at ($4.40). This is the 62 percent retracement of the decline from $1.01 to ($13.13). The narrowing spread is currently a result of strengthening WTI prices and a weaker outlook … Continue reading WTI-Brent Spread Narrowing
Midweek Natural Gas Forecast – April 1, 2015
Natural gas had been supported by late winter weather in regions of the U.S. through late last week. However, as expected, natural gas prices finally broke lower out of the large scale corrective pattern that formed during the calendar month of March. The move down is poised to continue, but in the very short term, … Continue reading Midweek Natural Gas Forecast – April 1, 2015
Failed Technical Pattern Calls for Brent Crude Price to Decline
Brent crude’s failure to close above the $57.5 completion point of the weekly morning star setup (circled in green) was negative and indicates the geopolitically driven move up that took place last week may be short lived. The Brent crude price rose modestly on Monday, but most short-term technical factors indicate it should test $53.1 … Continue reading Failed Technical Pattern Calls for Brent Crude Price to Decline
Midweek Natural Gas Forecast – March 25, 2015
Natural gas prices are still oscillating in the upward sloping range that began March 3 when the $2.641 swing low was made. The lower trend line of the formation, which connects back to the $2.589 contract low, was tested, but held again on Monday. Most pundits indicate the long-term fundamentals are bearish, but this begs … Continue reading Midweek Natural Gas Forecast – March 25, 2015
WTI Crude Oil Correction Poised to Extend
WTI crude oil rose for a second straight day due to the declining dollar. The long-term bias is still negative, so the move up is corrective. However, mixed fundamental and technical factors indicate the correction should extend to at least $48.2 before settling into another trading range. This is the 1.00 projection for the wave … Continue reading WTI Crude Oil Correction Poised to Extend
Midweek Natural Gas Forecast – March 18, 2015
During the calendar month of March the April natural gas futures contract has traded in a range bound between $2.64 and $2.87. Most fundamental and technical factors are still negative for the long-term. The move up at this point is still corrective and will only delay the inevitable decline that is ultimately coming. However, late … Continue reading Midweek Natural Gas Forecast – March 18, 2015
NY Harbor ULSD Futures Setup for Correction
NY Harbor ULSD futures fell to a new intraday low for the eighth session in a row, but formed a bullish morning star setup and hammer. These are bullish reversal formations, but in this case it is more likely that a subsequent move up will be a correction rather than a reversal. In addition, the … Continue reading NY Harbor ULSD Futures Setup for Correction
Technical Factors Call for Natural Gas Prices to Test $2.89
Natural gas prices are still oscillating in the corrective range between approximately $2.60 and $3.00. Early in the week it looked as though natural gas prices were ready to continue the decline. However, while there is little doubt that the long-term bias is negative, Wednesday’s price rise has called into questions how soon natural gas … Continue reading Technical Factors Call for Natural Gas Prices to Test $2.89
