Today In Commodities: European Contagion

By Matthew Bradbard: Energy: Crude oil started the week 0.31% higher, closing just under its 8 day MA. Though $94 may be challenged, I expect prices to remain under that level and resume their downward move, dragging prices under $87/barrel. RBOB is just under $3/gallon at elevated levels that I do not think are sustainable. We need confirmation of a top, but I sense prices are due for a 20-25 cent correction. Clients have NO exposure currently.

By Matthew Bradbard: Energy: Crude oil failed at the same resistance that has capped rallies the last three weeks, reversing mid-day to close near its lows, off 1.23% down. I anticipate lower trade into next week, dragging prices back near $87 and if so, I will tighten stops on shorts to not have the trade move against open positions for clients again. After printing a fresh contract high in RBOB, prices backed off to close virtually unchanged.

By Matthew Bradbard: Energy: Crude will finish about in the middle of the $4 trading range we experienced this week. After challenging the trend line the last 2 days bulls are trying to make a case for a bounce but I am still looking for a trade under $90 in the coming weeks. RBOB finished the week strong with a 2.3% jump today lifting prices back just under $3/gallon in October. $2.70 remains my target in the coming weeks.

By Matthew Bradbard: Energy: Crude oil probed the 8 day 8 MA on the downside but did pare losses to close just under the 100 day MA, virtually unchanged in today's session. I'm in the camp that prices are due for a $5-8 retracement. I advised aggressive clients to gain bearish exposure with either futures or options to try to capitalize on that break.

By Matthew Bradbard: Energy: Overnight it appeared we were going to have a nice jump start to the week but as we draw to a close on the session crude appears to close lower by 1%. However a base looks to be forming and my take is still to be scaling into long positions around these levels anticipating a trade near $90/barrel in the coming weeks. On its highs RBOB tested the 18 day MA, a level that has served as resistance since late March.

By Matthew Bradbard: Energy: Crude oil is barely positive, but $2.60 off its lows. It is too early to call an interim low, but buyers are testing the waters. I've yet to purchase options or gain bullish exposure via futures, but selling put spreads under the market is on my radar. Lower trade was rejected in RBOB today, with prices higher by .50% as of this post. The support level from November may hold once again. $2.91 is the upside resistance in June futures.

By Matthew Bradbard: Energy: Crude oil will finish lower 4 out of 5 sessions this week, closing under its 8 and 18 day MA today. I think we would be down more if it was not for the strength in the distillates and the upward pull from Brent. I still think we can get a trade to $93, but do not overstay your welcome if prices get there, and be ready to take a profit on bearish trade. The 8 day MA has supported in RBOB all week, with prices finishing up 2% near its weekly highs.

By Matthew Bradbard: Energy: Crude oil gained for the first time in five sessions, closing just above $86/barrel in December. Upside should be contained around $87 on this contract. I am still searching for slightly lower trade however, if prices do no trade under $85 by this time next week, I will likely move to the sidelines. There is no need to stay in a choppy sideways market.