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Technical update on the oil market 22/08/2012

Published Wednesday, August 22nd, 2012

We said yesterday that the resistance levels below had to be closed above to see higher numbers today. Most of them were hit but only Gasoil settled over it (due to its early settlement).


WTI:         96.74 (200-day continuation M/A) and 97.50 (200-day contract M/A).

Brent:    115.40 (recent high on the October contract), 115.50 (gap on the continuation chart after September expiry).

Heat:     312.74 (recent high on the September contract).

RBOB:   309.43 (recent high on the September contract).

Gasoil: 987.00 (recent high on the September contract).


The trend is still up but yesterday’s general failure means that we are due a downward correction. The 8 and 13-day M/As could be tested. These are as follows:

WTI:         95.41 and 94.62

Brent:    113.67 and 112.40

Heat:     308.51 and 305.39

RBOB:   304.12 and 301.76

Gasoil: 973.75 and 964.50


If one believes that the current uptrend will continue then a prudent strategy to follow would be to buy on a dip to the 8-day M/As and protect the positions on a close below the 13-day M/As. In case of a rally profit take is recommended at the resistances listed above.

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.