WTI Crude Oil Resistance At 87.92, 88.68, 89.35

For those not clear on my analysis yesterday, it comes to this; when I get bearish, that’s usually the signal for reversal. True to form yesterday, as I have been turning negative, the market has decided to slap my hand. We do see some weakness this morning, but the tone is changing.

We are going to head into the last few days prior to expiry and start to look higher. We have resistance at 8792, 8868 and 8935. Failure can lead us back to return to support at 8579, 8444 and 8313. The front spread has refused to give up much ground and looks to hold support to –56 with upside targeting –52. Flat price may stall sideways this morning, but looking higher to close.

Trends are only for the affected:
I hate the details, but I love the truth. So, we’re going to be honest and take a look at the minor downtrend on the 10 min chart this morning. It may be a relief move after yesterday’s run up, but the chart shows us holding the 8600 area. A rally will have to trade above 86.85 to correct back to neutral. The 60min chart also has not convinced that we are reversing the current down trend just yet. We’ll need a move above 88.20 to see that confirmed.

Gasoline:
We see strength across the board, but remaining flat here. That has resistance above at 26505, 26649 and 26949. The support numbers can return to 26355, 26241, 26004. The front spread look cheap here and resistance faces –54, -41 and –30. The downside looks for support to –70, -80 and –91. The RBCL continues the trend higher with support line to 2440 and channel resistance at 2535.

Distillate:
HOF3 looks strongest in the complex. We have resistance above at 29781, 29891 and 29988. The support numbers follow lower with 29650, 29441 and 29292. The front spread is holding it’s range between –26 and –06. We can see a breakout re-turning to +1, +12. The HOCL trends higher with room to move up. Support line holds the 3800 level, then rises to pivot at 3885 and resistance at 3977.

By Carl Larry