Technical & Fundamental Oil Reports Specialists

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Expect corrective rallies – downtrend bedding in and lower likely

Published Thursday, March 6th, 2014

The downtrend is resuming. All the short term (s/t) MAs have been closed below. There are targets lower on some of the contracts – WTI to 99.97; Heat to 297.23; and RBOB to 291.85. These three contracts and the rest all hit intra-day objectives on the way lower yesterday. Brent and Gasoil held these target levels but on closes below would acquire further objectives south. The stochastics are negative and gave very good early warning signals of this weakness by displaying bearish divergence on the Ukrainian spike. The action is some way below the 5 day MAs, and this usually means an attempt will be made to narrow the gap. Don’t be surprised by a morning rally today, which then fails

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Posted by Robin Bieber