WTI Crude Oil To Trade Sideways, Watch 103.75 Levels: Carl Larry

Not exactly the coming back party we expected in CL. Volume was good, then again, we did see a major correction. Numbers here are not changing the chart and it’s heading back to the resistance at 10150, 10262, 10375. If we turn back to support levels at 10008, 9944 and 9865. The front spread slipped to find support to –24, but might be getting a little overdone here (again). We’re going to keep an eye on resis-tance at –16 and -08. If flat price slips, look for the spread to take a hit to the –30 area. Today we’re thinking we can finally get some love and test higher early. The move to the close should keep us steady.

Gasoline:
We’ve moved on to RBX3. I’d like to think a lot has changed, but it hasn’t. We are still have resistance to 26867, 27080 and 27240. The support numbers fall back 26550, 26330 and 26155. The front spread has faded and is testing support to 128 and 95. The resistance looks to hold 148, 165. The RBCL can run again with resistance at 1084, 1128. Support to 1020, 988.

Trends are only for the affected:
A big drop, but nothing to hang a hat on regarding direction. We think the 10min chart once again hits a sideways move here with support not down to 10000 and resistance still holding the ceiling in the 10210 area. The 60min chart is taking care of business with it’s downtrend channel. We saw the pull back from channel resistance yesterday take us to the pivot and below. This morning that pivot sits in the 10050 area and could be a trigger to target the 9910 support line. Resistance now looks to 10170.

Fundy you should mention:
I sure didn’t expect all of those economic numbers to come right back out without much warning. Then again, I’m sure funds weren’t expecting the Jobless Claims to look so terrible (353K). If anyone has to think about why CL went down and the stock market was ripping, three words; flight to quality. We think that oil is going to take a back seat here for a while until everyone gets a better picture on the economy. We only have Leading Indicators (0.6) at 10:00am EST, but it’s the wave that hits us next week with Un-employment on Tuesday and PPI on the following Tuesday.

Sorry, I am just physically attracted:
A blip on the news yesterday, but worth watching, was the natural gas pipeline explosion in Alberta. Sure, nobody ever cares about a nat gas line, but this one happened to help power all of the crude pro-duction up there. Whoopsie. Seems like TransCanada has rerouted gas back up there, but a lot of pro-ducers were scrambling to cut back production. We’ll be watching to make sure everything is hunky dory. Genscape published a Cushing inventory increase of +868K. I don’t care who you have watched this week between the API or Genscape, but if you saw my mock review on Wednesday morning on www.oiloutlooks.com, you would have saw some pretty good numbers that are eerily similar.

Techies, some Trekkies

200 Day MA 9854

100 Day MA 10307

13 Day MA 10245

8 Day MA 10176

14 Day RSI 40.50

Spread now; Roll later

Everything is expensive

Key support: -14, -22, -30

Key Rests: 00, +06, +11

By Carl Larry