NYMEX HO (X20): Bullish Focus

• RES 4: $1.2651 - High Sep 2
• RES 3: $1.2341 - 61.8% retracement of the Aug 5 - Oct 2 decline
• RES 2: $1.2155 - High Sep 3
• RES 1: $1.2059 - High Oct 9 and the intraday bull trigger
• PRICE: $1.1748 @ 07:14 BST Oct 19
• SUP 1: $1.1484 Low Oct 12 and key near-term support
• SUP 2: $1.0688 - Low Oct 2 and the bear trigger
• SUP 3: $1.0470 - Low May 15
• SUP 4: $1.0319 - 76.4% retracement of the Mar - Aug rally

HO futures maintain a bullish tone despite the recent volatile price action. The contract rallied sharply higher on Oct 5 signalling a reversal of the downtrend that has dominated since Aug 5. The reversal pattern that defines price action on Oct 5 is a bullish engulfing candle. This confirmed a base at $1.0688, Oct 2 low. The focus is on $1.2341 further out, a Fibonacci retracement. Initial firm support lies at $1.1484, Oct 12 low.