Energy Traders Focus on Products
RBOB – RBOB Gasoline is down for the third consecutive day, as the market appears well-supplied at the moment. Prices at the pump have begun to stabilize around the nation with no major disruptions to refineries. Energy traders will be looking past the Crude Oil number, focused on the gasoline and distillates number. A broad sell-off in the petroleum complex is likely if RBOB inventories rise. The daily July RBOB chart looks bearish and is close to confirming a double top formation measuring the $2 mark on the downside. Momentum comes in at a bullish +.0662, and the RSI is a neutral 39 percent. Support can be found at 2.1300 and 2.1170, while resistance comes in at 2.2700 and 2.3190.
Copper – Copper is trading over 3 cents lower this morning, unable to get a lift from shrinking LME inventories. Workers at Mexico’s largest mine, Grupo Mexico, are expected to strike beginning June 10th if a resolution is not reached, which could interrupt supply. The hangover from sagging manufacturing reports and the uncertainty of China’s near-term economic growth is keeping markets lower. Technical weakness has also kept bulls on the sidelines. The daily chart looks bearish due to the recent crossover of the 20 and 50-day moving averages, coupled with the reversal of trend. July Copper has formed a wedge formation since mid-May, which also suggests further weakness if the lower boundary is breached. Momentum comes in at a bearish -27.40, and the RSI is a neutral 62 percent. Support can be found at 333.85 and 317.25, while resistance comes in at 350.00 and 369.70.
Gold – Gold is trading two dollars lower this morning, as traders remain indecisive about market direction after the recent run-up. Weaker energy prices kept the market lower yesterday, despite weakness in the stock market. Gold may be able to get a lift if today’s EIA inventory report shows tightening supplies. The precious metal market has been unable to find support, despite weaker equity prices. The August Gold chart appears to be forming a bull flag formation, signaling possible advances beyond the 680 resistance area. Momentum is beginning to show some bullish divergence from the RSI, suggesting a slight bullish bias for the remainder of the weak. Momentum comes in at a bearish -21.80, and the RSI is a neutral 61 percent. Support can be found at 668.00 and 657.50, while resistance comes in at 680.00 and 692.50.
