July crude oil closed down $4.72 at $131.96 a barrel yesterday. Prices closed near the session low and scored a bearish "outside day" down on the daily bar chart yesterday. A report that China has raised its government-controlled fuel prices by around 17% sunk the crude market yesterday. Recent price action has shown a marked increase in intra- day price volatility. That is a warning signal of a very mature market that could be close to a top. The next upside price objective for the crude oil bulls is to produce a close solid technical resistance at the contract high of $139.89. The next downside price objective for the bears is producing a close below solid technical support at $130.00 a barrel. First resistance is seen at $133.00 and then at $135.00. First support is seen at yesterday's low of $131.48 and then at $130.00.
Wyckoff's Market Rating: 7.5
JULY HEATING OIL
July heating oil closed down 1,460 points at $3.7140 yesterday. Prices closed near the session low and scored a bearish "outside day" down on the daily bar chart yesterday. Bulls still have the overall technical advantage, but faded yesterday. A bearish double-top reversal pattern could be forming on the daily bar chart. The bulls' next upside price objective is closing prices above technical resistance at the contract high of $4.0338. Bears' next downside price objective is producing a close below solid technical support at the June low of $3.5350. First resistance lies at $3.7500 and then at $3.8000. First support is seen at yesterday's low of $3.7010 and then at $3.6500.
July (RBOB) unleaded gasoline closed down 1,142 points at $3.3525 yesterday. Prices closed near the session low yesterday and scored a bearish "outside day" down on the daily bar chart. Bulls still have the near-term technical advantage, but to not want to see a bearish weekly low close on Friday. The next upside price objective for the bulls is closing prices above solid resistance at the contract high of $3.5762. Bears' next downside price objective is closing prices below solid support at $3.3000. First resistance is seen at $3.4000 and then at $3.4700. First support is seen at yesterday's low of $3.3252 and then at $3.3000.
Wyckoff's Market Rating: 7.5
JULY NATURAL GAS
July natural gas closed down 38.5 cents at $12.825 yesterday. Prices closed near the session low yesterday after setting another fresh contract high. Price action yesterday also scored a bearish "outside day" down on the daily bar chart. If there is solid follow-through selling pressure on Friday, then a bearish "key reversal" down would be confirmed, which would be an early technical clue that a market top is in place. The next upside price objective for the bulls is closing prices above resistance at yesterday's contract high of $13.35. The next downside price objective for the bears is closing prices below solid technical support at $12.50. First resistance is seen at $13.00 and then at $13.25. First support is seen at yesterday's low of $12.625 and then at $12.50.
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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