February Brent Crude Trading

ENERGY MARKETS

The energy markets closed lower on Monday due to light
profit taking on the first trading day after Christmas.

February crude oil posted an inside day with a lower close
on Monday due to profit taking thereby ending a two-day
rebound off last Tuesday's low. However, the mid-range close
sets the stage for a steady opening on Tuesday. Closes above
last week's high crossing at 33.00 or below last week's low
crossing at 31.25 are needed to clear up near-term direction
in the market. Closes below last week's low crossing at
31.25 would confirm that a top has been posted while opening
the door for a possible test of this fall's uptrend line
crossing near 30.15 later this winter. Stochastics and the
RSI remain bearish signaling that sideways to lower prices
are possible into the first half of January.

February heating oil closed lower due to profit taking on
Monday, which ended a two-day rebound off last week's low.
The mid-range close sets the stage for a steady opening on
Tuesday. Closes below the 20-day moving average crossing at
90.00 and then last Tuesday's low crossing at 88.30 would
confirm that a top has been posted while opening the door
for a possible test of this fall's uptrend line crossing
near 83.75. Stochastics and the RSI are bearish signaling
that sideways to lower prices are possible near-term.