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5 and 8s are key resistance – Support holding, watch RBOB

Published Thursday, April 24th, 2014

The contracts are not moving harmoniously – this was yesterday’s opening sentence and it remains the case today. All, bar RBOB, are under pressure. WTI alone is below all the short term (s/t) MAs and RBOB is above them. Brent, Heat and Gasoil are below the 5 and 8s, which are initial resistance, and above the 13s. These contracts will remain under pressure whilst they are south of the 5 and 8s. Key support is holding at 101.17 WTI; 108.57 Brent; 298.19 Heat; and 914.50 Gasoil. Whilst these levels hold there are no targets lower. Meanwhile the stochastics on all contracts, bar RBOB, are negative and will make any rally hard work. Sit on one’s hands and watch the action at the 5 and 8 day resistances and the key supports. WTI has no target lower whilst it holds 101.17 (c/p and 34 day). A move and close (m/c) below here would make a leg down to 100.26 (50% c/p and 34 day) very likely. Resistance is strong around 102.38 (5 and 13 day) then 102.64.

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Posted by Robin Bieber