Flat Will Grind Higher, Slow And Steady Is The Way

After the late push to the close and the CLJ3 expiration, we’re still finding it hard to do much past neutral. We’re still faced with a daunting task on the charts of breaking out of the range we’re stuck in. The move continues between 9200 and 9440. For now, as we test the resistance, we’ll look for 9360, 9431 and 9555. Turning back to support levels, we’ll target 9236, 9136 and 9014. The front spread is getting tighter and we may have a good reason to see it make a fair run at backwardation. The resistance continues to test –26 and a breakout will look to the –20 to –18 area. Flat price today will grind higher, but slow and steady is the way.

Gasoline: RBJ3 here. This is on strong bounce, but we’ll have to see if we can maintain the focus higher. Resistance is key at 31268, then on to 31600, 31878. Support falls back down to 30963, 30758 and 30419. The front spread starts higher and looks up to resistance at 167, then 188 and 212. Support retreats to 145, 106, 75. The RBCL now hits a ceiling at 3700, 3742. Support returns to 3645. 3573.

Distillate: HOJ3 is where we are. We’ve picked it back up to the resistance numbers and we’re looking now at 28959, 29021 and 29243. Support returns to find lower at 28845, 28678 and 28514. The front spread hits resistance at –1010 and –1040. If we see failure, we’ll head back lower to find support at –1030 an –1050. The HOCL hits resistance at 3264, 3316. Support comes back in at 3212, 3187.

Trends are only for the affected: After all the action yesterday, we still find ourselves within a range on the 10min chart. The support area holds the 9250 line and the resistance sets up in the 9350 area. Until we see a solid move through those parameters, we’re not going to find much direction. On the 60min chart our uptrend is failing into a simple sideways consolidation pattern. We see a support area of of 9220, and resistance ready to hold the 9440 ceiling.