Bottom Pickers Paradise – Heating Oil Rises Following Reports Of A Colder Winter in 2016
Concerns over a recession triggered by the U.K vote to leave the European Union has raised investors’ worries about Brexit’s potential impact on energy demand. Since the winter has ended and the summer is on the way, the demand for heating oil is currently at the lowest levels given the off season. Prices of heating oil are currently understandably lower. Nevertheless, the release of a weekly energy market report from Powerhouse yesterday indicated that there was a 75% probability for the next winter to be colder than usual – which may ultimately enhance the demand for heating oil. This has helped pare recent losses. On the hourly chart, the price is in an uptrend after holding the support at 1.4274. According to the stochastic chart, both the %K line and %D line have entered the overbought territory, but the buying force is not yet weakened since the %K line is still far above %D line.
Buy stop at 1.4597, Take profit at 1.4616, Stop loss at 1.4551