NY Heating Oil dropped to $2.95, hitting its lowest point in 8 months. Later, it recovered 2.22 cents and is now trading at $2.97.
United States EIA Short-Term Energy Outlook is next today at 17:00 UTC.
Amid the market gloom, United States ISM Non-Manufacturing PMI (Nov) released yesterday at 15:00 UTC with a figure of 56.5, while the previous figure was 54.4. Data for United States Factory Orders published yesterday at 15:00 UTC came out at 1%, beating projections of 0.7% and showing improvement over the preceding figure of 0.3%. Fresh ISM Non-Manufacturing Employment (Nov) data from United States came out at 51.5.
Analysis of Heating Oil Futures's recent price action suggests Heating Oil could begin to recover as it approaches significant support, now 6 cents away from $2.91. Dipping below could be an indication that further losses are ahead. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains. According to asset volatility analysis, Heating Oil's lower Bollinger Band® is at $3, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
With market volatility ebbing, the current technical outlook indicates NYMEX Heating Oil will remain range-bound for the immediate future.
In the meantime, negative performances are also seen in other Energy as Brent Crude Oil slides down 1.06% to trade around $81.8. Crude Oil is down 80 cents from the beginning of the session and now trades around $76.13.
Some optimism can drawn from the fact that United States Crude Oil Inventories is projected to outperform its last figure with -3.88 million. It previously stood at -12.58 million; data will be released tomorrow at 15:30 UTC.
Furthermore, United States EIA Short-Term Energy Outlook is expected today at 17:00 UTC.
The commodity has been trending lower for about a month. Heating Oil Futures is now trading 39.32% below the significant high of $4.94 it set around 7 months ago.