Is it inversion time for the january 2016 heating oil future?
Looking at patterns (according to the volume spread analysis), we can see a selling climax, followed by a stopping volume and, a few days later, by a no supply bar. A typical bullish sequence...
If we look at the COT Index, the commercials bullish stance could confirm our guess.
Also looking at the seasonality we see a bullish trend (now and for the beginning of 2016) that would suggest a reversal.
Heating oil futures also show a very high volatility: the implied volatility is at 94.18%, the historical at 33.87%. It seems heating oil is reaching a bottom level, and could be ready to take off.
Remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.