Crude oil appears to finish higher 4 out of 5 sessions this week, climbing just over $3/barrel. I don't see prices hanging at these elevated levels, and have advised traders to scale into bearish trades anticipating prices to rollover. Once October closes under $94, I would say we are on our way back under $90…in my opinion. RBOB will close 7 cents off its highs, as an interim top may have formed yesterday. A close under the 8 day MA just above $3 should confirm that into next week. Once prices breakdown, we should see 20 cent deprecation with ease. Lower low and lower high indicates heating oil could be ready for a correction as well. Only a preliminary sign, but on further weakness, I would expect 20 cents here as well. Natural gas tested but failed to break the 50 day MA. Looking at the charts, I would move to the sidelines, exiting all remaining shorts. If October holds $2.70 next week, I would likely be looking to wade back into bullish plays for clients.... Continue to read.
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