Spread Edge Capital specializes in seasonal spread trading across a wide variety of commodity markets. A spread trade is the simultaneous purchase and sale of the same commodity with different delivery dates.  SpreadEdge publishes a weekly Newsletter that provides several seasonal spread trade opportunities every week.

Overview

Each week the SpreadEdge Newsletter documents an extensive list of seasonal, technical and fundamental indicators for the various commodity markets.  This article will focus on a technical analysis for the Energy sector.  

Technical Analysis

Most of the markets within the Energy sector have been forming a wedge formation that began with the highs in mid 2022.  Brent Crude, WTI Crude, Heating Oil, and Gas Oil have similar technical patterns but are in various stages of breaking out,  Gasoline also has a similar pattern but has yet to break through.

• Heating Oil and Gas Oil have the most impressive break-outs within the Energy sector.  Both markets broke though in early January and have added 14.4% and 10.8%, respectively.

• Brent Crude and WTI Crude were the next markets to break through the downward trendline.  These breakouts are somewhat less impressive and have not gained double-digits as yet.

• RBOB Gasoline has yet to break though the downward trendline.

Open Trade Summary

Spread Charts represent the difference between the front and back month contracts and are simply the front month price minus the back month price.  

I have been fortunate to catch the moves in Brent Crude (top left), Gasoline (top right), and Gas Oil (bottom right).  Not surprisingly, my short Crude Oil butterfly spread (bottom right), which I have kept for balance, is on the losing end thus far.

More Information

Use coupon code “SpreadEdge” and get the Weekly Newsletter and Daily Alerts for $1 for the first month.  For a limited time, you can receive my Futures Training Videos for free with a 3-month, 6-month, or 12-month subscription.

For a FREE eBook about the SpreadEdge seasonal spread strategy.

The SpreadEdge Weekly Newsletter is published every weekend and provides a broad overview of the important seasonal, technical, and fundamental indicators within the Energy, Grains, Meats, Softs, Metals and Currency markets.  In addition, spread trade recommendations and follow-up on open trades is also provided.  For a free copy of the Weekly Newsletter, please send an email to info@SpreadEdgeCapital.com

Darren Carlat

SpreadEdge Capital, LLC

(214) 636-3133

Darren@SpreadEdgeCapital.com

www.SpreadEdgeCapital.com

Disclaimer

SpreadEdge Capital, LLC is registered as a Commodity Trading Advisor with the Commodity Futures Trading Commission and is an NFA member. Past performance is not indicative of future results. Futures trading is not suitable for all investors, The risk associated with futures trading is substantial. Only risk capital should be used for these investments because you can lose more than your original investment. This is not a solicitation.