Technical & Fundamental Oil Reports Specialists

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Faltering up-trend. The key is the s/t MAs – watch them.

Published Thursday, February 27th, 2014

The up-trend is damaged and faltering, but not conclusively over yet. Closes below the 13 day MAs on all, or at least a majority of the contracts, are needed for this, and WTI, Heat and RBOB are all above the 13s. Only Brent and Gasoil are below. This is not a thumbs up for the up-trend, but nor is it a mortal wound. The key today will be the action around the short term (s/t) MAs. Above the 5 and 8s and the odds are on a re-test of the recent highs – below them and more pressure on the 13s. The lead will come from the US contracts. In short it’s a s/t MA day today – observe carefully: they will give guidance on the next leg. Meanwhile there are no targets higher and the stochastics are negative, which will make rallies hard work. On balance the betting money is on lower. WTI performed relatively well. It is just below the 5 and 8 day MAs around 102.35/43.

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Posted by Robin Bieber