Technical & Fundamental Oil Reports Specialists

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Crucial resistances are expected to be tested

Published Monday, April 14th, 2014

A mixed performance did nothing to undermine the positive technical picture on Friday. Those contracts that finished the day in negative territory did not close below supports. WTI, RBOB and Gasoil all finished higher, tested strong resistances over the course of the day but these resistances were not settled over. Renewed buying is pushing the whole complex up to these resistances this morning. This strength should not come as a surprise as all the daily short-term M/As held on Friday and the daily slow stochastics, albeit high, are all still positive. Bulls will only start getting concerned if the highest of these M/As, the 5-day are closed below. These supports are 103.51 WTI, 107.79 on Brent, very close to the 107.69 c/p support, 294.25 on Heating Oil and 901.75 on Gasoil, right where the 34-day M/A is. On RBOB the same support is at 300.60, just above the 300.12 range support. As pointed out in Friday’s report this is the most important support on board and no long positions should be held on a close below this level. On such a move the test of the 8 and 13-day M/As should take place.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.