Technical & Fundamental Oil Reports Specialists

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Key supports have held – Wait for developments

Published Tuesday, March 11th, 2014

The contracts are struggling but holding key supports, which were pretty much the intra-day targets for yesterday’s action – having failed at the 5 and 8 day MAs and then headed south. These key support levels are at 101.00 WTI; 107.83/68 Brent; 296.16 Heat; and 906.00 Gasoil. Whilst they hold there are no targets lower. In addition, RBOB has clawed its way back to try to move over the pivotal c/p at 295.04, with the 5 day just above around 295.20. If RBOB can move back over 295.04 and 295.20 then the odds would be on a rally that would likely become contagious. The scope for this rally would be up to the 5 and 8 day MAs on most contracts. The stochastics are negative, but until there are closes below the supports it is not advised to be short around here. Use 295.04/20 as a pivot on RBOB, which will be an early warning signal for the rest. Key supports have held – be patient.

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Posted by Robin Bieber