WTI Crude Oil: The Pivot Shifts To $88, Resistance 89.10-89.20

Ok, we’re getting somewhere here. Even though volumes are terrible, we’re seeing some lift in the market. Have to think this is a seasonal play since we see the same thing every year. CL gets the Santa rally a little early. The idea is that we punch up the oil prices while everyone is gone and they have to play catch up through January when volume returns.

So we’ll get resistance at 8787, 8918 and 9048. The support numbers fall back to 8713, 8638, 8556. The front spread is tightening into the expiry and we see our target resistance now at –42 if we can push past –46. Support holds to –52. Flat price goes higher in a quiet market.

Trends are only for the affected:
Not a lot of volume behind the rally on the 10min chart, but we’re not here to argue semantics. We like the support line to hold what it can in the 8770 area. This will have enough room to test resistance at the pivot area of 8815 and channel resistance at 8860. Trade back below 8725 knocks the trend down and looks for consolidation. The 60min chart is solidly in an uptrend and yesterday’s support line moves up to 8690. The pivot shifts to 8800 and channel resistance at 8910-20.

Techies, some Trekkies
- 200 Day MA 9279
-100 Day MA 9070
- 13 Day MA 8706
- 8 Day MA 8634
- 14 Day RSI 48.09

Spread now; Roll later
- New year, new spread
- Key support: -67, -73, -77
- Key Rests: -59, -52, -48

Gasoline:
Plenty of gas in this tank. We see resistance at 26880, 26977 and 27255. The sup-port numbers fall back on 26585, 26440 and 26257. The front spread found love in a hopeless place and is going after resistance at +82, +105 and +113. The support comes back to +53, +35 and +18. The RBCL needs to hold support to 2421 or test 2384. Resistance looks to 2505, 2535 and 2586.

Distillate:
HOF has been a laggard. We see resistance tough at 29913, 30002 and 30285. The support holds 29717, 29600 and 29424. The front HO spread is finding solid resistance at +49 with +65 and +77 above. Support can fall back to test +33, +17 and +08. The HOCL is thinning with the CLF3 expiry and will try to test resistance at 3756, 3800. Support looks back to 3690, 3635.

By Carl Larry