Energy Prices Continue to Consolidate

On March 26, 2014 by TradingDesk

Energy prices continue to consolidate (go nowhere) after an early morning rally was wiped out in the afternoon for the 3rd straight trading session. The pattern continues today as both RBOB and ULSD futures are moving fractionally higher towards their 14 day moving averages – the level that has held back each attempted advance so far.

Traders seem to be conflicted over potentially bullish conflicts in Ukraine, Libya, and this morning’s news that Nigeria was cutting crude output again, facing off against bearish influences of stagnant global demand and increasing production of energy products. Price action over the next few weeks – will we rally back above $3 for RBOB and ULSD, or test the year’s lows – may set the tone for trading through the summer.

We’ll be traveling the next few days. Perhaps when we return there will be something more interesting to write about. Enjoy the rest of the week.

CLICK HERE for a PDF of today’s chart

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