Continued Search for Direction

On May 29, 2013 by TradingDesk

Due to our continued search for direction, our energy complex rallied in sympathy with equities yesterday as it saw favorable housing data and a spiking consumer confidence. However today we are seeing RBOB and HO pulling back modestly which would continue the range-bound trading we have seen for the last 3 weeks. A break to either below the mid 2.70s or above the high 2.80s could turn resistance into support, or vice versa, and give RBOB some direction. Same goes for HO at above 2.95 and below 2.80.

Basis markets seemed unimpressed when a CSX locomotive was derailed in Maryland when it smashed into a truck that had stopped on the tracks. The explosion from the chemicals onboard rocked some nearby storage facilities. Luckily no one was hurt and refined-products-by-rail hasn’t been implicated as the sole culprit.

CLICK HERE for a PDF of today’s chart

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