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Up-trend developing, at important resistance; Watch RBOB – full of clues

Published Wednesday, April 9th, 2014

Once RBOB moved over the key 293.33 level, having held the 5 day MA on the dip, the way was clear for the contracts to all move higher.  They all joined in and resistances were swept aside as the contracts pushed higher on a slingshot (s/s) move up. Most contracts have completed a price cycle higher and now need further good closes to maintain the momentum of the move up. There are some key resistances that need to be closed over. These are at 102.68/83 WTI (range); 107.55/91 Brent (two 34 day MAs and a 50% c/p, i.e. heavy); 293.13 Heat (c/p); and 901.75/903.50 Gasoil (two 34s). RBOB needs to stay over 295.62 to have an objective higher to 300.12, but it is unlikely to go it alone so needs the rest to kick in above the aforementioned key resistances. Note that on Brent, Heat and Gasoil the price action around the highs is very close to the 34s – these represent completions of the price cycle from being over the s/t MAs to these longer term MAs – i.e. be careful.

To read the rest of the report, please click here 

Posted by Robin Bieber