What’s Up, What’s Down: Crude-Oil Futures Down
Comments for Thursday, October 1, 2009
Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action
ENERGIES:
Sharply higher closes on Wednesday for crude and heating oil along with the rbob but lower for natural gas. Believe it or not my sell signals are still in place. Crude, heat and gas are all in resistance areas making lower highs and lower lows since August. Gas had a huge trading range but managed to settle higher close towards its session’s highs with good resistance over 50 basis the November contract. Gas continues, though, to be in a short-term uptrend but forming another even greater potential buy signal.
GRAINS:
Higher closes yesterday for corn, rough rice, soybeans, soymeal and soyoil along with Minneapolis, Kansas City and Chicago wheat while one cent lower for oats. All of the wheat made new contract lows before settling higher with Minneapolis making another KEY REVERSAL. The trend for all wheat is still down overall, however but, once again, the KEY REVERSAL must be respected. Corn settled higher once again helped along by colder weather forecasts. Technically corn is forming a potential bottom but still has a DOUBLE TOP from the 15th and 16th of September and needs to close over 350(Dec.). On the other hand corn has held the 300 area so far which actually surprised me, at least so far. Rice settled once cent higher but has little support down to the 130 area basis the January contract looking weak overall at this time. Oats lower close ended its higher close consecutive steak at 6 but still looks good for the bulls since my buy signal last week. Now oats need to settle over 240 basis the December contract. The bean complex also settled higher with beans, meal and oil still in support areas looking lower overall.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.
See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.