Daily Spot: Energies
A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]
Crude Oil Feb (CLG) Fill ‘er up. Tuesday’s close above the 91.00 target kept in-play 91.70. It was tested overnight, and retested intraday. It was exceeded, back up to 92.50, where the shock drop originated last Monday. The drop’s origin held as resistance, but 91.70 held as support when tested before the close. Closing back under 91.00 would signal momentum reversing down. Otherwise, a close above 93.00 could turn the recent dips to 87.50 into a base for launching a new upleg.
Natural Gas Feb (NGG) This is no time to rest. A fresh high overnight tested the 4.55 signal. It was retested intraday Wednesday. Twice. And then a third time into the close. Neither held on a closing basis. A shallower bounce into the close attacked 4.55 again, stopping short of touching it. Potential remains alive for extending higher, especially so long as 4.45 holds as support. But multiple tests of resistance must prove to have chipped away at it, or else be repelled by it.
Dollar Basket Mar (DXH) Back things come to pullbacks that wait. The relentless delay finally broke under 80.10 and 80.90 Wednesday to start the pullback. It broke under its minimum 80.50 target and now is likely to also test 80.00.
Gold Feb (GCG) Holding support is not a rally. Another intraday recovery from a dip to 1378.00 did fail to close back above Tuesday’s highs. One day’s delay is acceptable, a third would not be. Wednesday was the second, and Thursday should either extend higher or else reveal a problem to the recovery.
30-year Treasury Mar (USH) Good news, bulls! (Bad news, too.) Wednesday’s gap down under Tuesday’s low did not extend. But its reaction filled the gap back to Tuesday’s close without closing above it. This neutralized the attraction above that might rescue falling prices or otherwise slow their pace in an extended decline.
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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Softs (Fri, coming).