Energy Recap: 2022.01.10

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Energy prices fell back to start the trading week despite ongoing production problems into separate areas. Obviously, Libyan supply problems are more important than Kazakh production issues with Kazakhstan production more domestically orientated. In addition to a stronger dollar and significant weakness in equity prices, the latest US infection count registered 831,000 infections for last Friday. Expectations for this week's Reuters poll predicts a decline in US crude oil stocks of 2 million barrels and that would be on the lighter side of the reading seen over the past several weeks.

TECHNICAL OUTLOOK

CRUDE OIL (FEB) 01/11/2022: A crossover down in the daily stochastics is a bearish signal. Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. The market's close above the 9-day moving average suggests the short-term trend remains positive. The market's close below the pivot swing number is a mildly negative setup. The next downside objective is now at 76.91. The next area of resistance is around 79.22 and 80.14, while 1st support hits today at 77.60 and below there at 76.91.

RBOB GAS (FEB) 01/11/2022: A crossover down in the daily stochastics is a bearish signal. Daily stochastics turning lower from overbought levels is bearish and will tend to reinforce a downside break especially if near term support is penetrated. The market's short-term trend is positive on the close above the 9-day moving average. The market's close below the 1st swing support number suggests a moderately negative setup for today. The next downside target is 223.54. The next area of resistance is around 230.30 and 233.55, while 1st support hits today at 225.30 and below there at 223.54.

HEATING OIL (FEB) 01/11/2022: Rising stochastics at overbought levels warrant some caution for bulls. A positive signal for trend short-term was given on a close over the 9-bar moving average. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The near-term upside target is at 254.51. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 251.66 and 254.51, while 1st support hits today at 246.74 and below there at 244.68.