What’s Up, What’s Down: Higher Heating Oil, But Lower for Crude

Comments for Monday, September 21, 2009

Looking Ahead to Today by Reflecting Back at Friday’s Price Action


Higher close on the 18th for natural gas while lower for crude and heating oil along with the rbob. The crude and rbob are still giving me sell signals but the heating oil gave me a BUY SIGNAL last Thursday which I don’t trust but it’s a buy signal nevertheless. Natural gas settled higher with a sharp rally off its session’s lows. I still have a sell signal for the gas while it attempts to form a possible bottom with resistance over 375 basis the October contract.

Crude-Oil Chart


Higher closes Friday for soybeans, soyoil and Minneapolis wheat while unchanged for rough rice and lower for corn, oats, and Minneapolis wheat. All of the wheat continues to hold their KEY REVERSALS while still in long-term downtrends overall. Corn settled lower again but is actually attempting to form a bottom at this time with the crop at least 2/3rds safe from a freeze at this time. Corn is still in a down-trend but a close over 350, however, would be significant technically. Rice settled unchanged in very narrow action for the second day in a row with little support down to the 130 area basis the January contract. Oats made a new recent high before selling off to close down near its lows of the day continuing to hold important lows at the 200 level basis the December contract and has been basing since late July. Still the trend is lower overall since early June. Beans settled lower while still in what’s close to a DOWN CHANNEL with good support from 925 to 900 basis the November contract. Meal also closed lower making lower lows and highs since early August with good support from 290 on down basis the December contract. Oil closed higher trying to base while in a support area around 350 basis the December contract.


Lower for copper, silver, gold and platinum again on Friday. All of the metals continue to be in uptrends but now showing signs of losing strength. Copper continues to show potential topping signs settling sharply lower with 27500 a key area to hold basis the December contract. Gold and silver settled lower also still bullish and now both in support areas. Platinum also closed lower but with no support nearby. The metals are all at precariously high levels overdue for retracement action. Be careful!

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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.

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.

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.