2/7/2013 Update:

Wednesdays’ Crude Pit Session:

High: 96.99

Low: 95.14

Close:  96.64

Looking ahead to today:

We are looking at a stronger bullish type market before today’s pit session bell as we caught a strong bid off yesterday’s 95.14 lows making new overnight highs at 97.17.   If this uptrend continues we need to see a break and close above the 98.00-98.30 level to possibly push us into the 100.00-102.00 handle as options suggest.  If we do close and settle above the 98.00 handle we are expecting a slow drift up to the 100’s unless tensions in the Middle East escalate which would cause a rapid spike in prices.  Conversely, we are looking at a break below the 95.00-94. 50 support levels to be a bearish indication that could push us down into the 90.00 to 86.00 handle.   This still remains a possibility as we saw the 94-90 PUT levels still trading heavily yesterday as supply remains high and heating season is coming to an end.  

Levels:

Support: 96.26, 95.52, 95.04, 94.41, 92.56

Resistance:  96.99, 97.37, 98.30, 99.00, 99.96

Wednesdays’ Natural Gas Pit Session:

High: 3.459

Low: 3.413

Close:  3.419

Looking ahead to today:

We have seen natural gas trading higher during the last few pit sessions off of colder 6-10 day weather reports and talk of a major snow event hitting the East Coast this weekend.  However,  keep in mind that’s this market is still being driven by extremely high inventory levels and technical weather patterns and we are currently trading near the major 3.40-3.60 levels where many traders are looking to possibly cover long positions.   That said,  we need to keep a very close eye on todays 11am Storage numbers (-135 BCU Draw Forecasted) as a larger than expected draw could continue to push prices higher and a smaller draw may spark long covering at these levels.

Levels:

Support: 3.433, 3.407, 3.398, 3.372

Resistance: 3.459, 3.468, 3.494, 3.555

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