Heating Oil Futures—Heating oil futures in the December contract is currently trading higher by 135 points at 123.02 this Tuesday afternoon in New York as prices have now hit a 7 week high. If you had been following any of my previous blogs you understand that I was looking at a bullish position several weeks ago around the 121 level which has been breached today, however the chart structure is terrible therefor the risk/reward is not your favor to take a bullish position, however I am certainly not advising any type of short position as that would be counter trend trading.
Pfizer announced yesterday that they have come up with a vaccine for the Coronavirus as that should lead to strong demand for energy products as the world should get back to normal in the coming months ahead and that is exactly why heating oil has rallied coupled with the fact that we are also entering the highly volatile winter season where you can experience tremendous price spikes to the upside due to the cold weather.
I will wait for the chart structure to improve in the next couple of weeks as we need some type of price pull back therefor lowering the monetary risk so keep a close eye in this market as it certainly looks to me that a long-term bottom has finally taken place.
CHART STRUCTURE: POOR
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