Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8s for early clues; Market stuck – wait for developments

Published Tuesday, March 25th, 2014

The contracts have had a good run down last week, pretty much hit all targets lower, and held. These supports below the market remain in place and there are no further objectives lower whilst they hold. The next immediate leg is likely to be dominated by the action around the 5 and 8 day MAs, and these are in the “must watch” category of support/resistance. The contracts are now ebbing and flowing whilst they look for clear direction as to the next leg. The daily stochastics are positive and this should make rallies to resistance more likely. It’s advised to keep exposure limited until the next leg becomes clear. WTI is above all the short term (s/t) MAs and also above the key c/p at 99.46. The 8 day is last ditch support around 98.97. A move and close below here would make a move down to the 50% c/p at 97.92 very likely. In the meantime, resistance is at the 34 day, around 99.99, then the 200 day at 100.37. It would need a close over 100.37 to give this contact some upside at least to the next 34 at 100.74.

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Posted by Robin Bieber