Morning Energy Market Commentary

November crude oil was higher due to short covering overnight as it consolidated some of Wednesday’s decline. Stochastics and the RSI are turning bearish again signaling that sideways to lower prices are possible near-term. If November extends the decline off September’s high, the 62% retracement level of the June-September rally crossing at 87.19 is the next downside target. Closes above the 20-day moving average crossing at 93.75 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 91.14. Second resistance is the 20-day moving average crossing at 93.75. First support is the 62% retracement level of the June-September rally crossing at 87.19. Second support is the 75% retracement level of the June-September rally crossing at 84.29.

November heating oil was higher due to short covering overnight as it consolidates some of Wednesday’s decline. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If November renews the decline off September’s high, the 38% retracement level of the June-September rally crossing at 298.64 is the next downside target. If November extends the rally off September’s low, the reaction high crossing at 321.47 is the next upside target. First resistance is the reaction high crossing at 321.47. Second resistance is September’s high crossing at 326.33. First support is the reaction low crossing at 302.50. Second support is the 38% retracement level of the June-September rally crossing at 298.64.

November unleaded gas was higher due to short covering overnight as it consolidates some of Wednesday’s decline. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. Closes below September’s low crossing at 270.29 would confirm that a double top was posted during September while opening the door for additional weakness during October. If November renews this summer’s rally, March’s high crossing at 298.84 is the next upside target. First resistance is September’s high crossing at 296.54. Second resistance is March’s high crossing at 298.84. First support is Wednesday’s low crossing at 275.38. Second support is September’s low crossing at 270.29.

November Henry natural gas was higher due to short covering overnight as it consolidates some of Wednesday’s decline. Stochastics and the RSI are overbought and are turning bearish hinting that a pause if not a short-term top might be in place. Closes below the 20-day moving average crossing at 3.152 would confirm that a short-term top has been posted. If November renews the rally off August’s low, the 38% retracement level of the 2011-2012-decline crossing at 3.635 is the next upside target. First resistance is Tuesday’s high crossing at 3.546. Second resistance is the 38% retracement level of the 2011-2012-decline crossing at 3.635. First support is the 10-day moving average crossing at 3.285. Second support is the 20-day moving average crossing at 3.152

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