Rbob futures made a bottom extension signal yesterday:
This has the usual meaning – this decline has gone too far, too fast and there will probably be a rebound. Many energy markets are trading in ranges, so this is a reasonable assumption anyway now that prices are near the range lows.
Accordingly, cover all energy market shorts adopted on the advice given in the April 11th edition and try a long position. There is no reason to think that the Crude, Rbob and Heating oil markets will move in different directions, so which one (or more) to choose is a matter of personal taste. Just because Rbob is the only one to have extended (so far) doesn’t mean that it is the only candidate – Crude oil and Heating oil are possible choices too.
All signals generated by software supplied by our friends at Parallax Financial Research www.pfr.com
