NYMEX Heating Oil futures headed lower in sympathy with the broader crude oil complex during Tuesday's session. The turn-around after last week's strong performance falls in line with the progression of a large triangle chart pattern detected by Autochartist on the 240-minute time interval.
The market topped out at the trend line resistance that forms the top of the triangle, near $3.29 per gallon. Tuesday's price action confirms the downward trajectory and sets the stage for a retest of the rising support trend line at $3.22 per gallon. The triangle has a wide trading range to contend with, suggesting this may be a good candidate for buying support and selling resistance as the pattern advances.
Traders will be watching for potential weakness at the bottom of the triangle to see if the market can hold at these historically high levels. A breach of the $3.22 level would
initiate a technical breakout, where Autochartist will generate a lower forecast. Such a move would set the current trading range as formidable upside resistance, and may signal an intermediate term downtrend in the making. For further information on this and other Autochartist products, visit our website at www.autochartist.com