Technical & Fundamental Oil Reports Specialists

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Rallies to s/t MAs a sale – Down-trend bedding in

Published Wednesday, April 30th, 2014

Having broken down out of the range on Monday the contracts reacted back up some yesterday only to fail at the short term MAs. The correction back up was very much a reaction to Monday’s losses and not a huge surprise. It was text book performance and so too was the failure at the s/t MAs, which remain above the market as strong resistance and a sell on a further rally. There are no targets lower because support has, so far, held. This key support is at 100.26 WTI; 108.28 Brent; 294.91 Heat; 299.21 then 297.31 RBOB; and 914.50 Gasoil. There are no targets lower until these levels are closed below. Watch RBOB at 299.21 and 301.08 as key pivots – the next leg will likely be flagged on a move either side. Meanwhile the stochastics are negative, the move lower is bedding in, and rallies to the s/t MAs are sales. It is not advised to be long.

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Posted by Robin Bieber