What’s Up, What’s Down: Higher Crude Futures

  • August 7, 2009
  • Rick Alexander

Comments for Friday, August 7, 2009

Looking Ahead to Today By Reflecting Back at Thursday’s Price Action

ENERGIES:

Higher settlements yesterday for crude oil and the rbob while lower for heating oil and sharply lower for natural gas but no changes technically. The crude and heat made new recent highs while the former also made a new recent high close. All of the energies are still in good uptrends overall. Natural gas settled sharply lower after giving me a buy signal on Wednesday but now in a strong support area which should hold if my buy signal is any good.

Heating Oil Chart

GRAINS:

Lower closes Thursday for soybeans, soymeal and soyoil, Minneapolis, Kansas City and Chicago wheat along with rough rice, corn and oats. All of the wheat continue to look weak overall unable to hold their support areas making new recent lows and closes with Chicago making its lowest low and close since June ’07! Corn settled lower again now at the beginning of its last decent support area coming close to ending its buy signal but not quite. I still feel the beans with eventually pull up corn hopefully to near the 400 (Dec.) level which is about as far as corn will go this year if that high. Oats closed lower again still is in a downtrend and also unable to penetrate a strong resistance area (220-235 Dec.). However, oats are also forming a potential bottom at this juncture. Rice settled lower again but still in a BULL PENNANT looking very strong overall. The bean complex settled lower but not affecting the good uptrends in the beans, meal and oil.

Oats Chart

Corn Chart

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.