Possibly the downside correction could be starting as the energy complex is getting hit with a very strong round of selling pushing prices well off of the highs made in overnight trading. IS should not be a surprise but gasoline is leading he way lower as it has the most bearish fundamentals in the entire complex.
The interesting thing about the current downside move is the US dollar is still falling. So for the moment we can say the market is now focused on the a weakening economy and non-supportive oil fundamentals. Watch the market closely today it will be telling and likely to see the stage for the rest of the week. This type of erratic trading pattern (in every instrument….commodities & financials) is very difficult to interpret for a medium term view and one that is reflective only for the moment at hand.
Currently prices are lower across the board but still very over-valued even at the current reduced levels from Friday.
| Current Expected Trading Range | | | ||
| | 3/17/08 | Change | Upper | Lower |
| | | From | Resistance | Support |
| | 9:26 AM | Yesterday | | |
| Apr WTI | $105.99 | ($4.22) | $112.50 | $99.20 |
| Apr HO | $3.0480 | ($0.0985) | $3.2500 | $2.7100 |
| Apr RBOB | $2.5637 | ($0.1257) | $2.9000 | $2.5200 |
| Apr NG | $9.621 | ($0.247) | $10.250 | $8.700 |
| | | | | |
Dominick A. Chirichella
Energy Management Institute
tel 646-202-1433
tel 845.368.3904
fax 801.383.7510
www.advancedenergycommerce.com
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