Broad Energy Market Summary: Dismal unemployment numbers coupled with a relatively stronger dollar pushed the energy complex lower going into the weekend.
Specific Energy Market Summary:
Crude Oil (DEC) For week: Open 77.20 Close 77.34
Crude is in the process of establishing a big range of 76.50 - 81.50 ever since breaking out of the triple top at 76. Crude had been steadily higher on the week til a $2.50 sell off Friday afternoon. The sell off was partially attributed to the 26 year high unemployment numbers. Strength in the dollar also helped push crude lower. The big sell off Friday can also be attributed to traders squaring positions going into a weekend.
Heating Oil (DEC) For week: Open 200.7 Close 199.7
Heating oil was grinding higher before the unemployment numbers on Friday. The low number reopens fears that demand won't be as robust as predicted. We did violate a double bottom at 199.95 late in the day Friday. A new downtrend looks to have been established after 205 couldn't hold. Milder weather forecast also brings in sellers.
RBOB (DEC) For week: Open 195.80 Close 192.20
Just like the rest of the energy complex, RBOB was up, up, up til the unemployment number. We probably saw traders getting out of long positions as we go into the weekend as well. Major chart violations have occurred with support now coming into the market at the 187 level.
Natural Gas (DEC) For week: Open 503.4 Close 461.3
Natural gas continued its recent downtrend and closed at its lowest levels since early September. We look poised to test the lows of September 4 at 436. Similar to heating oil, the milder weather forecasts cuts demand projections. At Trendphonics, we are watching for a good entry point somewhere below 450, if we can get it.
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