Heating Oil Technical Analysis - Heating Oil Trading: 2022-10-04

Heating Oil Technical Analysis Summary

Above 3,43

Buy Stop

Below 3

Stop Loss

Indicator Signal
MACD Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Heating Oil Chart Analysis


Heating Oil Technical Analysis

On the daily timeframe, HEATOIL: D1 is in the neutral range and is moving towards its upper border. It must exceed the 200-day moving average before entering a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if HEATOIL: D1 rises above its latest up fractal and 200-day moving average of 3.43. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal and the last lower fractal: 3. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (3) without activating the order (3.43), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Commodities - Heating Oil

OPEC+ may reduce oil production. Will the HEATOIL quotes continue to rise?

OPEC, along with some other OPEC+ oil-producing countries, may cut total oil production by 1 million barrels per day at its October 5 meeting. If such a decision is made, it will come into force in November. Recall that this month OPEC + has already reduced production by 100 thousand bpd. The decision was made in early September. An additional positive for US heating oil (HEATOIL) may be the beginning of the heating season. We note that the US EIA in its September review maintained a relatively high forecast for the cost of Heating Oil. According to the EIA, it could be $4.61 per gallon in 2022 and $4.11 in 2023.