How would you plan for your energy trading this week? Before making a plan, just have a look at the energy market to have a good understanding of it for help!
The Energies Review
For the week of January 10th, 2011
By Pitguru Daniel Cronin
Crude Oil came off from the highs of $90+ to the big support at $87 last week as there was a pool of buyers at this level playing the technical game. The fire in the Canadian Oil facility on Thursday really bolstered the market as wti spreads went from -140 to -95 in Feb/March and March/April went from -120 to -75 as traders bought up the front month contracts in fear of a supply shut down. There was also another scare at Prudoe Bay, an oil line leak happened Sunday night and this had the same reaction as the Thursday scare. Spreads have since calmed down from the highs however as G/H trading -115 with H/J -96. I look for Crude to test the $87 level again with this being great support. Trading range should be $87 to $90 but I am looking for more of a test to the downside.
Natural gas still looking very healthy above the $4.40 level as prices are now consolidating here waiting for the next move higher. The technical indicators look bullish here with the golden cross set to happen very soon. I would be playing the long side and look to buy a dip below $4.30 in the $4.0 area if at all possible.
Energy Review for Thi Week: January 10th, 2011
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