Energy Prices Continued Bullish Technical Breakout Yesterday

On July 19, 2012 by TradingDesk

Energy prices followed through on their bullish technical breakout Wednesday, and the buying has picked up steam overnight, after Iran was accused of a terrorist attack on Israeli tourists in Bulgaria, and the US was quietly moving another aircraft carrier into the Straits of Hormuz.

Although 2 days of testimony by Ben Bernanke produced nothing in the way of an action plan from the FED, equity markets continued to rally, and the Euro has bounced back from a 2 year low, all of which are helping to boost commodity prices. If the long term average 30% summer-fall rally in refined product prices is produced this year, off of a June low in the $2.50 range, RBOB and HO futures are heading back towards the $3.30 range by September, with resistance in the $3.00 range the major hurdle to cross in the short term.

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