This week we are going to start by focusing on a very near term play and then expand our time range a little bit.
First on the list this week is Heating Oil.
Looking at a 90 minute chart as shown above, I would be paying very close attention to the potential to form a head and shoulders pattern here and the capability to break the neckline on this one. If this occurs, you could easily break the trendline on this chart as well. Watch for short side potential and Heating Oil, April 2013 NYMEX contracts for their ability to move below the 3.03 territory. I would be watching for this break ideally between Monday and Tuesday of this week. If the pattern completes itself, you could see it as low as 2.98.
Towards the beginning of this week I would look for a slight bullish retracement in Natural Gas. It has had a bit of failure as of late and may be able to regain a little bit of that strength.
The Daily chart, as shown for the March 2013 NYMEX contracts, would be my anchor for this potential play. If it can use the 3.40’s as a bit of a baseline, you might be able to see more duration should bullish behavior occur. Initially keep your targets tight if it does start to run up and then evaluate whether or not we are building a new potential trend on the Day.
Last, but definitely not least on the watch list this week for me is Platinum. This opportunity could easily be an opportunity for a longer term time frame.
The Daily chart shows you a really nice tightening pattern, which almost has a pennant look to it. It is not immaculate, but shows as a very bullish pattern. Keep an eye near term for a break of the 1700 territory. I would like to see this happen at the beginning of the week and then potentially build momentum throughout the remaining days this week.
The Weekly chart also highlights the 1700/1725 area as a resistance level to break. Should Platinum gain enough momentum coming through this area, we might be able to see it test the 1800’s and then maybe even make a run at 1900. If a break on the Day chart pulls through to cause a break on the Weekly chart, then you could have a pretty solid move on your hands. Keep a close eye on the important levels for this one.
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