Charts Remain Stuck In Neutral For Energy Prices

On April 29, 2013 by TradingDesk

Energy futures have begun what will be a busy week for economic news with modest selling, both RBOB and HO are down nearly 2 cents, while WTI holds slight gains.  The flight of non-commercial “speculative” money from energy commodities continued last week in HO, RBOB and Brent, while WTI held steady.  As the chart below shows, HO has not had this big of a net short position in the past 5 years.  Charts remain stuck in neutral for energy prices, with a break through resistance in the mid $2.80s for RBOB and low $2.90s in HO needed to continue last week’s bounce.  A break below $2.70 for both will be the key test for lower prices.

Meanwhile, the DJIA and S&P 500 continue to hover near their all-time highs, contrasting sharply with Bond and Commodity markets that are retreating as global economic activity contracts. With only 2 days left to sell by May and go away, the action early this week will go a long way to determine our future trend.

CLICK HERE for a PDF of this morning’s charts

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