Energy Prices Take A Summer Break

On July 20, 2012 by TradingDesk

Energy markets are selling off today, taking a break from a month long rally that has pushed RBOB and HO futures up over 40 cents. The question now becomes whether today’s move is just a natural correction following a relentless move upward in 4 weeks, or was the last month’s rally just a correction of the larger sell-off that started in April. The first test will be support in the $2.87-$2.88 range, if we hold there, expect the seasonal rally to continue.

Protests in Spain over the bank bailout/citizen austerity package being put in place has stoked the coals of concern in Europe that had cooled somewhat in recent weeks. The Euro has broken below 1.22 vs the US dollar again, which is dragging stocks around the globe lower today.

CLICK HERE for a PDF of this morning’s charts

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