June crude oil closed up $0.16 at $123.69 a barrel yesterday. Prices closed near the session high yesterday and hit another fresh contract and all-time high of $124.40. This week's price action is an early clue of a "blow-off top" developing in crude oil. Bulls still have momentum and power and would-be top pickers do not want to stand in front of a steaming locomotive. The market is still short- term technically oversold and due for at least a downside correction soon. The next upside price objective for the crude oil bulls is to produce a close above psychological resistance at $125.00. The next downside price objective for the bears is producing a close below solid technical support at $120.00 a barrel. First resistance is seen at $125.00 and then at $126.00. First support is seen at $123.00 and then at $122.00.
Wyckoff's Market Rating: 10.0
JUNE HEATING OIL
June heating oil closed up 625 points at $3.5098 yesterday. Prices closed near the session high yesterday and hit another fresh contract and all-time high. Bulls have the solid overall technical advantage. The market is still technically overbought, however. The bulls' next upside price objective is closing prices above strong technical resistance at $3.6000. Bears' next downside price objective is producing a close below solid technical support at $3.3200. First resistance lies at yesterday's contract high of $3.5291 and then at $3.5500. First support is seen at $3.5000 and then at yesterday's low of $3.4316.
June (RBOB) unleaded gasoline closed up 196 points at $3.1378 yesterday. Prices closed nearer the session high and hit another fresh contract yesterday. Bulls still have the overall technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at $3.2000. Bears' next downside price objective is closing prices below solid support at $3.0000. First resistance is seen at yesterday's contract high of $3.1525 and then at $3.1750. First support is seen at yesterday's low of $3.0909 and then at $3.0500.
Wyckoff's Market Rating: 10.0
JUNE NATURAL GAS
June natural gas closed down 6.4 cents at $11.263 yesterday. Prices closed near mid-range yesterday. Bulls still have the overall near-term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at the contract high of $11.465. The next downside price objective for the bears is closing prices below solid technical support at last week's low of $10.48. First resistance is seen at $11.465 and then at $11.50. First support is seen at yesterday's low of $11.211 and then at $11.061.
Jim Wyckoff became a financial journalist with
Futures World News for many years, cutting his teeth
as a reporter on the futures trading floors in
Chicago and New York, where he covered every futures
market traded in the United States at one time or
another including commodity futures trading in Softs and Metals. Click here for full
bio >>
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