Technical & Fundamental Oil Reports Specialists

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Stay neutral and watch RBOB for early clues

Published Monday, April 7th, 2014

Thursday’s “bear trap” was followed on Friday by mostly strong numbers but ones that failed to follow through. WTI, Brent and RBOB all pushed on to complete price cycles at 101.62 WTI; 106.97 Brent; and 293.33 RBOB, but failed to hold on to the gains and close over these key levels. The result was lacklustre closes and some weakness overnight with some softish numbers now. The market is reacting back and the next leg is not clear. RBOB holds the clues again – moves and closes beyond the c/ps at 290.78 support and 293.33 resistance will give the answers. Moves and closes beyond these extremities will give us the direction of the next move. Watch RBOB and, in the meantime, adopt a neutral stance waiting for clarity. WTI rallied to the key c/p at 101.62 and failed. It has no target higher until it closes over here. Support is at 100.74 then 100.28. A move and close below 100.74 would put this contract on the defensive, but only a close below the 5 and 13 day MAs around 100.28 would be bearish.

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Posted by Robin Bieber