Crude
Oh bite my tongue and slap me silly. OK, that’s not really technical talk, but I have to admit, I have been a little nonchalant about the moves the past few days. I think this is hard to measure, but the sentiment in the charts is starting to turn. We think that this sideways range is simmering for a breakout and now that move leans higher. We’re going to look for resistance at 9490, 9535, 9660. The support numbers fall back on 9390, 9288 and 9175. The front spread continues to hold sideways too with support to the –37 level and knock on resistance in the –32 area. We think that this is going to move soon too. Flat price will stutter early, but look for a rally to the close again.
Gasoline
We’ve moving on to RBZ3. RB is doing it’s best to keep the dream alive for the Bulls. We’re going to continue looking higher to resistance at 26070, 26223 and 26444. The support numbers can revert back to 25869, 25748, 25538. The front spread is holding steady here after a good push yesterday. Resistance at 124, 155. Support to 99, 75. The RBCL knocks resistance at 1449, 1502. Support to 1402, 1335.
Trends are only for the affected
Not a lot of doubt here about the stagnating market on the 10min chart. We’re holding the sideways pat-tern without a lot of action, but given yesterday was somewhat of a holiday, we’re willing to look ahead to today. We’re still holding resistance in the 9540-50 area and support holds the 9390 level. On the 60min chart the numbers don’t deviate too much further. We’re looking to resistance at the same 9550 level and support gets a bit more room to the 9300 level.
Fundy you should mention
I will say this, the CME tried to make the day really interesting yesterday. Seems that their E-Quotes system was punching up false volumes in several commodities. Now if I were a fund trying to trade on volumes, I would have had a few issues yesterday. According to the CLZ3 60min chart, yesterday’s volume up until the fix at 1pm garnered about 500K contracts. Yeah I know, who knew? Funny thing is that they haven’t been able to wipe the charts with yesterday’s volumes, so those are going to have to get pushed out of the system. Hopefully a better day today with only some Fed speak on the agenda.
Sorry, I am just physically attracted
We don’t want to start any crazy conspiracy theories here, but if we didn’t, where would all the fun be? Motiva Convent (255K) is due to come down for maintenance in January. We hear that this is going to be an extended repair job and should last at least a month. We’re in the camp that everything Motiva does from here is going to have an ulterior motive. We think that Movita, a joint venture between Shell and the Saudis, are going to continue to face issues on crude supply and refining margins here in the US. Bringing in imports was the best way to bump up margins at their refineries, but the money is being made with WTI now. Going to be interesting to see how that affects the bottom line in 2014.
Techies, some Trekkies
200 Day MA 9867
100 Day MA 10320
13 Day MA 9570
8 Day MA 9453
14 Day RSI 36.30
Spread now; Roll later
Everything is expensive
Key support: -35, -43, -54
Key Rests: -28, -17, -06
By: Carl Larry