NO 2 HEATING OIL
In the previous update I discussed the strength in the energy sector and analyzed Brent Crude Oil. Price of Brent Crude is breaking out of a long-term symmetrical triangle. 3 year-long uptrend resumes in the parallel trend channel and price is clearly above the 200 day moving average.
In this update I’m looking at other energy commodities to see similar patterns. Heating Oil, due to its high correlation with Brent Crude and Light Crude followed the same pattern, a 3 year-long uptrend that found support at the lower boundary of its trend channel and price held above the 200 day moving average. Though Brent Crude formed a symmetrical triangle over the past one year, Heating Oil traded in flat range and formed a rectangle.
3.20 level is strong resistance for Heating Oil and if price breaches above this level we will expect further strength towards 4.00 levels.
