Gasoline: Support Will Look Lower To Find 145, 130,118.

It’s nice to be up early to watch the charts and see what numbers really mean. We broke through the 10000 level without much fanfare in the CLX3, but we’re also ready to move on to the CLZ3 contract. That’s following the move lower here, but we think that it’s going to have to wait until later to follow through. That will test support to 9959, 9958 (200D MA) and 9747. Bargain hunters may be able to catch a reversal and will be looking or resistance back up above at 10050, 10149, 10252. The front spread moves along too and we’re going to look to contango here to –02, -08. Flat price fades early, but start to come back and close stronger

Gasoline:
We’ve moved on to RBX3. The complex is following the lead in CL. Support heads to 26584, 26378 and 26159. The upside swings back to resistance at 26787, 26952 and 27148. The front spread heads up to resistance at 159, 178. Support will look lower to find 145, 130 and 118. The RBCL moves over to Z3. We see resistance here at 1091, 1134. Support falls back on 1017, 980.

Trends are only for the affected:
Well all it took was a good kick in the 10000 level and we can get things interesting again on the 10min chart. If we can keep the steep pace up this morning, we’re going to look for the support line to hold the 9980 area. This will keep things tight to the upside as resistance hits 10035. A break only needs trade back above 10070 to reverse. The 60min chart continues the downtrend here with support coming up at 9940. Pivot is in the 10065 area with a lot of room to channel resistance at 10185.

Fundy you should mention:
Grab a bucket of popcorn, this week’s economic numbers should keep us well entertained. It’s a mix of last month’s and the current numbers. There’s only Existing Home Sales (5.3M) at 10:00am EST, but it’s the sentiment that counts and we’re going to see how we start off the week. If this looks weak, we have tomorrow’s Unemployment data for September. We might be able to see money return to oil if we fall into a weak recovery. That means that QE tapering is put off, maybe for another year, and we continue the slow grind higher. Our only concern is contraction and then all bets are off.

Sorry, I am just physically attracted:
Well it’s getting to that time of the month. This would be the end of October and this is when Tran-sCanada is supposed to open up Keystone XL from Cushing to Nederland, TX. That’s up to 800K b/d of crude that can come on down and join the light sweet party. We do think that this widening of the WTI/Brent spread can and will continue, but the most important part of this is to keep making money for US refiners. They’re already tightening the noose on EU refiners and now there’s some talk about Russia following suit sooner than later. We think that realistically we could see our refined exports climb to over 4M b/d in 2014.

Techies, some Trekkies

200 Day MA 9858

100 Day MA 10314

13 Day MA 10211

8 Day MA 10153

14 Day RSI 37.16

Spread now; Roll later

Everything is expensive

Key support: -04, -09, -14

Key Rests: +06, +11, +18

By Carl Larry