Energy Report

By Ino.com

energyJuly Nymex crude oil was higher overnight after data from an industry group showed a decline in U.S. crude stockpiles and figures out of China indicated strong demand. U.S. oil prices settled above $50 a barrel Tuesday for the first time since July. Crude has nearly doubled in value since hitting decade-lows earlier this year as production disruptions and falling U.S. output have taken barrels off the oversupplied global market. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If July extends this year’s rally, November’s high crossing at 52.25 is the next upside target. Closes below the 20-day moving average crossing at 48.83 are needed to confirm that a short-term top has been posted. First resistance is the overnight high crossing at 51.12. Second resistance is November’s high crossing at 52.25. First support is the 20-day moving average crossing at 48.83. Second support is the 25% retracement level of the 2014-2016-decline crossing at 46.83.

July heating oil was higher overnight as it extends this year’s rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If July extends this year’s rally, November’s high crossing at 165.15 is the next upside target. Closes below the 20-day moving average crossing at 148.53 are needed to confirm that a short-term top has been posted. First resistance is the overnight high crossing at 156.13. Second resistance is November’s high crossing at 165.15. First support is the 20-day moving average crossing at 148.53. Second support is the reaction low crossing at 144.50.

July unleaded gas was higher overnight. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below last Wednesday’s low crossing at 157.61 are needed to confirm that a short-term top has been posted. If July resumes this year’s rally, November’s high crossing at 169.50 is the next upside target. First resistance is May’s high crossing at 167.07. Second resistance is November’s high crossing at 169.50. First support is last Wednesday’s low crossing at 157.61. Second support is May’s low crossing at 144.84.

July Henry natural gas was higher overnight as it extends the rally off May’s low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If July extends the aforementioned rally, January’s high crossing at 2.635 is the next upside target. Closes below the 20-day moving average crossing at 2.275 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 2.498. Second resistance is January’s high crossing at 2.635. First support is the 10-day moving average crossing at 2.341. Second support is the 20-day moving average crossing at 2.275.

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