Technical & Fundamental Oil Reports Specialists

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Erratic but failing

Published Monday, March 10th, 2014

Once the initial resistances had been broken over on Friday the action was textbook – straight to the short term (s/t) MAs, which contained the recovery. There is no upside until at the very least the 5 and 8 day MAs are moved and closed over. Being over the 5, which in most cases is now very close to the price action, only indicates a loss of downside momentum; being over the 8 however is much more relevant in that it flags a move higher to the 13 and a potential change of direction. We are below the 5 and 8s at the moment – indicating a failure!  I mentioned on Friday that the contracts never like being far from the 5 day and that when they are this increases volatility – this is exactly what we witnessed on Friday and the gap between the price action and the 5 day disappeared on the rally. The contracts are now stuck between support and resistance but failed at the s/t MAs.

To read the rest of the report, please click here 

Posted by Robin Bieber