Technical & Fundamental Oil Reports Specialists

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Stay neutral and watch RBOB for early clues

Published Tuesday, April 8th, 2014

The contracts continue undecided. Neither rallies nor dips seem to have much staying power and it’s advised to sit on one’s hands until the next leg is clear. WTI and RBOB are both above all the short term (s/t) MAs, whilst the rest are only above the 5 but below the 8 and 13. This does not really help make the picture clearer. The next leg will be determined by RBOB and what it does at two pivotal numbers – 290.78 support and 293.33 resistance. Both are c/ps and moves and closes beyond either extremity will most likely give us the direction of the next leg both for RBOB and the rest of the contracts. It’s advised to wait for the picture to clear, which is probably imminent, and I would bet on a break higher. The stochastics are mixed and wobbly, but RBOB’s is positive – Heat’s is negative, so not much help! WTI closed below the key c/p at 100.74. It has moved over this level this morning. A move and close over 100.74 would activate a leg higher to the next c/p at 101.62 and only a close over here would green light a target higher to 102.83.

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Posted by Robin Bieber