• 4 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 7 minutes Trump Will Win In 2020
  • 12 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 31 mins Millennials: A boil on the butt of the work ethic
  • 9 hours Hong Kong protesters appeal to Trump for support.
  • 7 hours A little something for all you Offshore swabbies
  • 19 hours Europe: The Cracks Are Beginning To Show
  • 16 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 21 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 3 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 3 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 30 mins US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 6 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 6 hours Shale profitability
  • 6 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 3 hours Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 16 hours Let's shut down dissent like The Conversation in Australia
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Matthew Bradbard

Matthew Bradbard

I have over 1 decade of experience in the Commodities industry. Managing my own IB for over 5 years and my own CTA for fifteen…

More Info

Premium Content

Daily Heating Oil Update - 26.02.13

In the last 2 weeks heating oil prices have collapsed falling by 20 cents gallon. As you can see on the chart above as of this post futures are challenging their 100 day MA; identified by the light blue line. Prices have been above that pivot point for 5 weeks …the last time April futures were under $3.00. There appears to be more downside and I’ve suggested clients tracking energies to use the Fibonacci levels as their objective on any bearish trade. I think it is possible to see a trade 10-15 cents lower but I do not think prices will stay at those levels for any extended period if we even get that low.

I have advised larger more aggressive clients to be looking for bullish trade entries if we see further 3-5% deprecation from current levels. There are several different strategies that one can trade heating oil from, an outright long/short via futures or options or one of my favorites as most readers know is trading your bias in the futures and then selling calls/puts against the futures 1:1. There are relationships that you can trade as well trading Crude oil and RBOB against heating oil.

In a normal trading week inventory reports come out on Wednesday so expect fireworks tomorrow that could dictate the immediate direction. Before putting on any size on bullish trade please do yourself a favor and look at a weekly chart as this is the third consecutive week prices have been in the red and for the last 10 months we’ve been unable to get above the same levels we topped out 2/3 weeks ago. I’m not trying to talk you out of the trade but just trade comfortable size is the message.

Daily Heating Oil - 26.02.13
Click to enlarge.

To discuss in more detail this chart or any other you can reach me at: mbradbard@rcmam.com or 954-929-9997

Risk Disclaimer: The opinions contained herein are for general information only and are not intended to provide specific investment advice or recommendations and are not tailored to any specific’s investor’s needs or investment goals.  You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice.  Past performance is not necessarily indicative of future results.  

By. Matthew Bradbard




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play