What’s Up, What’s Down: Crude Oil – Near a Support Level?
Comments for Tuesday, April 20, 2010
Looking Ahead to Today by Reflecting Back at Monday’s Price Action
ENERGIES:
Lower to sharply lower Monday for crude and heating oil along with the rbob and natural gas. Although the crude, heat and rbob are in uptrends overall, they were hurt by the action of the last couple of trading sessions making their lowest lows and closes in two weeks. Crude is near a support area while the rbob is in one. Gas closed lower and, while making a key reversal on April 1st along with showing signs of a possible bottoming formation, it looks like it’s in a BEAR TRIANGLE poised to continue moving lower overall. BUY SIGNALS FOR CRUDE, HEAT AND THE RBOB. CALL FOR DETAILS!
FINANCIALS:
Higher closes yesterday for the Eurodollars while lower for the notes and bonds. The Eurodollar still has its TRIPLE TOP in place but I’m staying neutral until it breaks out of its sideways pattern since late February. The notes and bonds made their highest highs in three weeks before selling off and closing lower in reversal type action. The notes bounced off of a good resistance area.
CURRENCIES:
Higher for the dollar index while lower for the Japanese Yen, British Pound, Canadian and Aussie Dollar along with the Euro Fx and Swiss Franc. The euro continues to be in a down-trend but has now gone into a consolidation mode and, along with the franc, is neutral at this time. The yen made a new recent high again but settled lower in reversal type action. I do have a buy signal but the long-term trend is definitely down. The Canadian Dollar made its lowest low in over two weeks but its up-trend is still intact. The pound also closed lower but has struggled since I got my buy signal while the Aussie Dollar made its lowest low in two weeks still in a good up-trend overall. The dollar made its highest high and close in a week but has basically been trading between 8000 and 8200(June) since the beginning of February
Read 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.
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.