energy

Oil futures fell sharply Monday, extending their retreat from $100 as investors sold on concerns that a cooling economy will curb demand for oil and gasoline.

MCX Crude Oil Jan fell after registering a high of Rs. 3860 per barrel towards the low and traded below 3760 with loss. Similarly Nymex Crude oil traded below $95.50 per barel

According to CNN, five Iranian boats harassed three U.S. naval ships in the Strait of Hormuz on Saturday, nearly resulting in an actual conflict. Is Iran eager for a fight or just trying to prop up oil prices? March crude oil is trading lower anyway.

The latest 6 to 10 day forecast from the National Weather Service expects above average temperatures for the eastern half of the U.S. March heating oil is steady to lower.

Traders remained focused on last Friday's Labor Department jobs report, which showed that employers added far fewer jobs last month than expected. They seemed to shrug off news of a confrontation Sunday between U.S. and Iranian warships in the Strait of Hormuz.

A stronger dollar Monday also weighed on oil prices. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling. Many analysts believe the weakening dollar helped draw speculative investors into

oil markets this fall and winter, driving oil prices above $100 a barrel last week.



MCX Crude Oil Jan (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Crude Oil Jan: Sell at 3770-3790 for target of 3680 and 3630 with stop loss below 3820



MCX Natural gas Jan (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Natural Gas Jan: Sell at 312.5-313 for the target of 308 and 302 with stop loss at 316.7

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