Oldest Oil Fund in the U.S. Targets Solar Stocks as Crude Outlook Dims

Petroleum & Resources Corp., the oldest U.S. oil fund, plans to invest in solar and wind power production for the first time since its founding in 1929 as governments crack down on fuels linked to greenhouse gases. The $555 million closed end fund, whose biggest holdings are Exxon Mobil Corp. and Chevron Corp., is analyzing wind power, biofuels, solar and hybrid car battery makers with an eye to making investments as soon as the second quarter of 2010, Chief Executive Officer Douglas Ober said.

Aside from an investment in an ethanol producer two years ago and a wind turbine manufacturer in the 1990s, the Baltimore based fund never before ventured into so called green energy, Ober said. That’s changing now because of legislative efforts to discourage use of oil based fuels and concern that global crude supplies are getting harder to find. “Climate legislation looks like it may become a reality in Washington, and that’s going to usher in significant changes for the oil companies,” Ober said yesterday in a telephone interview. “We realize there isn’t going to be oil forever, so we need to look for other types of stocks and find the right place to be”.....Read the entire article.

The Secrets to Building Your Own Solar Energy System.....For Under $200!

Share

New Video: Let’s Take a Fresh Look at Crude Oil

Today we are looking at a January crude oil contract, but this can be any of the other contract months.

We’ve looked at this market before and were expecting it to go higher. It did not, however, fulfill that promise and with a red weekly “triangle” in place, it appears as though this market is heading down, but is it?

Just click here to watch today’s short video and discover an interesting cycle that we want to share with you. This cycle along with our MACD indicator, daily and weekly “triangles” are beginning to look extremely interesting.

We strongly recommend taking a few minutes out of your day to watch this educational and informative video on crude oil.

Good trading,
Ray C. Parrish
President/CEO The Crude Oil Trader

Share

Crude Oil Bears Appear to Have The Upper Hand

Crude oil was lower overnight as it extends this week's decline. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term.

If January extends the decline off October's high, the 75% retracement level of this fall's rally crossing at 70.23 is the next downside target. Closes above the 20 day moving average crossing at 77.96 are needed to confirm that a short term low has been posted.

Friday's pivot point, our line in the sand is 76.50

First resistance is the 10 day moving average crossing at 76.95
Second resistance is the 20 day moving average crossing at 77.96

First support is last Friday's low crossing at 72.39
Second support is the 75% retracement level of this fall's rally crossing at 70.23

Check out the new "Trend TV"

Natural gas was higher due to short covering overnight as it consolidates some of this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If January extends this week's decline, weekly support crossing at 4.157 is the next downside target. Closes above the 20 day moving average crossing at 4.819 would temper the near term bearish outlook in the market.

Nat gas pivot point for Friday is 4.499

First resistance is the 10 day moving average crossing at 4.781
Second resistance is the 20 day moving average crossing at 4.819

First support is Thursday's low crossing at 4.432
Second support is weekly support crossing at 4.157

What do all market wizards have in common?

The U.S. Dollar was higher due to short covering overnight as it consolidated some of this week's decline. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term.

If March extends this year's decline, monthly support crossing at 73.39 is the next downside target. Closes above the 20 day moving average crossing at 75.40 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 75.14
Second resistance is the 20 day moving average crossing at 75.40

First support is last week's low crossing at 74.55
Second support is monthly support crossing at 73.39

All 7 Traders Whiteboard videos in one place!

Share

Crude Oil and Natural Gas Technical Outlook For Friday Morning

Nymex Crude Oil (CL)

Intraday bias in Crude oil remains neutral for the moment. Note that a break of 75.18 minor support will suggests that recovery from 72.39 has completed. Also, in such case, the choppy fall fro 82.0 could be resuming for 72.39 and below. On the upside, however, a break of 80.51 will indicate that choppy consolidations from 82.0 has completed already and the medium term rally could be resuming for 82.0 and beyond.

In the bigger picture, the lack of follow through selling and the choppy price actions from 82.0 so far dampen our bearish view. Instead, the corrective natural of the fall from 82.0 to 72.39 suggests that it's merely consolidation in the medium term rise. That is, rally from 33.2 is possibly not completed yet and a break of 80.51 will affirm this bullish case. Nevertheless, as we expect such rise to conclude inside resistance zone of 76.77/90.24 (38.2% and 50% retracement of 147.27 to 33.2), focus will remain on loss of momentum and reversal signal even in case of another rise.

Meanwhile, on the downside, a break of 72.39 low will firstly indicate that fall from 82.0 has resumed. Further break of trend line support at 71.10 will revive the case that crude oil has already completed the medium term rebound from 33.2 and bring deeper fall to 58.32 cluster support (50% retracement of 33.2 to 82 at 57.60) for confirmation.....Nymex Crude Oil Continuous Contract 4 Hours Chart .

Nymex Natural Gas (NG)

Natural gas' fall is still in progress and might head lower to lower end of the range at 4.157. But after all, as recent price actions are treated as consolidations to rise from 2.409 only, downside of the current fall is expected to be contained by 4.157 support. Also, we'd anticipate an upside breakout sooner or later after completing the consolidation. Above 5.318 will confirm that whole rebound from 2.409 has resumed and should target 61.8% projection of 2.409 to 5.318 from 4.157 at 5.955 next.

In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. Further will now remain in favor as long as 4.157 support holds, towards 38.2% retracement of 13.694 to 2.409 at 6.72 and beyond. Nevertheless, break of 4.157 support will indicate dampen this bullish case and turn outlook mixed again.....Nymex Natural Gas Continuous Contract 4 Hours Chart

Check out the new "Trend TV"

Share

Phil Flynn: Not So Demanding

Things are just not that demanding. A lot of times in recent months we can get carried away in a sea of macro economic mania and lose focus on good old fashion supply and demand. And if you believe the report put out by the Energy Information Agency, demand just isn’t that good. Oh sure there is always a macro economic back drop when you price a barrel. Yet for oil, for years it was noise in the background as opposed to the mellow drama up front. When the economy was rocking and supplies were squeezed any headline or rumor or OPEC comment could lift the oil market in the blink of an eye. Or back in the nineties when supplies were plentiful, we would live and die by any slight change in inventory to try to catch whatever small move might be made in a world of maddening stability. Yesterday oil seemed to try to go back to its roots of reacting to supply of course the slightest strength in the US dollar probably helped to add some pressure.

The builds across to board seem to suggest demand is bad and taking a turn for the worse and while all the numbers didn’t seem to quite add up, the overall report tells a cautionary tale about the current strength of our economic recovery. Let’s start with the numbers, the EIA reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.1 million barrels from the previous week. That put supply at 339.9 million barrels which is still well above the average range for this time of year. What was more shocking to some was the 4.0 million barrels increase in gasoline supplies which shows that drivers are cutting back as economic times are tough. The EIA says demand averaged 9.0 million barrels per day while up by 0.7 percent from the same period last year, we have to remember that last year at this time the economy was really starting to unravel.....Read the entire article.

Share

Where is Crude Oil and Gold Headed on Friday?

CNBC's Sharon Epperson discusses the day's activity in the commodities markets, and looks ahead to where oil is likely headed tomorrow.




href="http://www.ino.com/info/488/CD3116/&dp=0&l=0&campaignid=16">Check out the new "Trend TV"

Share

Crude Oil Market Commentary For Thursday Evening

Crude oil closed lower on Thursday as it consolidates some of its earlier gains this week. A short covering rally tempered early session losses and the mid range close sets the stage for a steady to higher opening on Friday.

If January extends the decline off October's high, the 75% retracement level of this fall's rally crossing at 70.23 is the next downside target. Closes above the reaction high crossing at 79.92 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 77.16
Second resistance is the 20 day moving average crossing at 78.18

First support is last Friday's low crossing at 72.39
Second support is the 75% retracement level of this fall's rally crossing at 70.23

Today’s Stock Market Club Trading Triangles

Natural gas closed lower on Thursday as it extends this fall's decline. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If January extends this week's decline, weekly support crossing at 4.157 is the next downside target. Closes above the 20 day moving average crossing at 4.848 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 4.798
Second resistance is the 20 day moving average crossing at 4.848

First support is today's low crossing at 4.432
Second support is weekly support crossing at 4.157

How to Use Money Management Stops Effectively

The U.S. Dollar closed lower on Thursday due to profit taking. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signaling that additional weakness is possible near term.

If March extends this year's decline, weekly support crossing at 73.39 is the next downside target. Closes above the reaction high crossing at 76.50 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 75.24
Second resistance is last Friday's high crossing at 76.50

First support is last Wednesday's low crossing at 74.21
Second support is weekly support crossing at 73.39

Check out the new "Trend TV"

Share

Bloomberg Analysis: Crude Oil Buyers Risk ‘Bull Trap’ Near $80

Crude oil buyers may misinterpret the market’s climb this week as a signal for further gains, exposing themselves to a potential price reversal, according to Cameron Hanover Inc. Oil, rising for a third week in four, will face stronger resistance the closer it gets to $82 a barrel, a one year high reached on Oct. 21, said Peter Beutel, president of the trading adviser in New Canaan, Connecticut. Buyers should watch for the market to settle higher each day before stepping in, rather than take their cues from intraday price swings, he said.

“We need to be careful of bull traps,” Beutel said in an email. “We should probably look for two closes with a second day higher than the first breakout day to confirm that a real breakout has occurred.” Crude oil touched a one week high above $79 a barrel on Dec. 1 as the dollar’s decline against the euro bolstered the investment appeal of commodities including gold.....Read the entire article.

Check out the new "Trend TV"

Share

Crude Oil Bulls Maintain Their Near Term Advantage

Crude oil was higher due to short covering overnight as it consolidates some of Wednesday's decline. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 78.22 are needed to confirm that a short term low has been posted. If January renews the decline off October's high, the 75% retracement level of this fall's rally crossing at 70.23 is the next downside target.

Thursday's pivot point, our line in the sand is 77.14

First resistance is the 20 day moving average crossing at 78.22
Second resistance is the reaction high crossing at 80.88

First support is last Friday's low crossing at 72.39
Second support is the 75% retracement level of this fall's rally crossing at 70.23

Check out the new "Trend TV"

Natural gas was higher due to short covering overnight as it consolidates some of this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If January extends this week's decline, weekly support crossing at 4.157 is the next downside target. Closes above the 20 day moving average crossing at 4.853 would temper the near term bearish outlook in the market.

Nat gas pivot point for Thursday is 4.611

First resistance is the 10 day moving average crossing at 4.807
Second resistance is the 20 day moving average crossing at 4.853

First support is Wednesday's low crossing at 4.511
Second support is weekly support crossing at 4.157

What do Super Traders have in common?

The U.S. Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If March extends this year's decline, monthly support crossing at 73.39 is the next downside target. Closes above the 20 day moving average crossing at 75.45 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 75.22
Second resistance is the 20 day moving average crossing at 75.45

First support is last week's low crossing at 74.55
Second support is monthly support crossing at 73.39

Share

Crude Oil and Natural Gas Technical Outlook For Thursday Morning

Nymex Crude Oil (CL)

With 4 hours MACD crossed below signal line, intraday bias is turned neutral for the moment. With 80.51 resistance intact, the choppy fall from 82.0 is possibly still in progress. Below 75.18 minor support will will flip intraday bias back to the downside for trend line support at 70.97. Nevertheless, note that a break of 80.51 will indicate that choppy consolidations from 82.0 has completed already and the medium term rally could be resuming for 82.0 and beyond.

In the bigger picture, the lack of follow through selling and the choppy price actions from 82.0 so far dampen our bearish view. Instead, the corrective natural of the fall from 82.0 to 72.39 suggests that it's merely consolidation in the medium term rise. That is, rally from 33.2 is possibly not completed yet and a break of 80.51 will affirm this bullish case. Nevertheless, as we expect such rise to conclude inside resistance zone of 76.77/90.24 (38.2% and 50% retracement of 147.27 to 33.2), focus will remain on loss of momentum and reversal signal even in case of another rise.

Meanwhile, on the downside, a break of 72.39 low will firstly indicate that fall from 82.0 has resumed. Further break of trend line support at 70.97 will revive the case that crude oil has already completed the medium term rebound from 33.2 and bring deeper fall to 58.32 cluster support (50% retracement of 33.2 to 82 at 57.60) for confirmation.....Nymex Crude Oil Continuous Contract 4 Hours Chart.

Nymex Natural Gas (NG)

Outlook in natural gas remains unchanged. Recent price actions should be consolidations to rise from 2.409 only and hence, downside of the current fall is expected to be contained by 4.157 support. Also, we'd anticipate an upside breakout sooner or later after completing the consolidation. Above 5.318 will confirm that whole rebound from 2.409 has resumed and should target 61.8% projection of 2.409 to 5.318 from 4.157 at 5.955 next.

In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. Further will now remain in favor as long as 4.157 support holds, towards 38.2% retracement of 13.694 to 2.409 at 6.72 and beyond. Nevertheless, break of 4.157 support will indicate dampen this bullish case and turn outlook mixed again.....Nymex Natural Gas Continuous Contract 4 Hours Chart

Share