HEATOIL pushes through Friday's high
Heating Oil (HEATOIL) Technical Analysis Report for Aug 19, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HEATOIL ended Monday at 1.8351 gaining $0.0205 (1.13%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 1.8350, the contract confirmed its breakout through the prior session high after trading up to $0.0021 above it intraday.
Daily Candlestick Chart (HEATOIL as at Aug 19, 2019):
Monday's trading range has been $0.0264 (1.46%), that's below the last trading month's daily average range of $0.0468. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HEATOIL. Prices continued to consolidate within a tight trading range between 1.8031 and 1.8439 where it has been caught now for the last three trading days.
Notwithstanding a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on July 29th, HEATOIL gained 1.99% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 1.8418 (R1). HEATOIL was bought again around 1.8107 after having seen lows at 1.8031, 1.8032 and 1.8091 in the last three trading sessions. Obviously there is something going on at that level.
The contract shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 1.8031 where further sell stops could get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Heating Oil. Out of 95 times, HEATOIL closed higher 51.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 53.68% with an average market move of 0.34%.
With three out of the other four Energy Markets closing higher today, the ones that stand out on the positive side are CRUDE gaining 2.3% and GASOLINE closing 0.59% higher. None of the markets ended the day in the red. Read more