Technical & Fundamental Oil Reports Specialists

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Up-trend – Do not be short; Expect early dip to support – Watch RBOB

Published Thursday, April 10th, 2014

The contracts had a good run up yesterday, and intra-day and slightly longer term objectives were hit as the up-trend bedded in. However, this morning the market is settling back a little and is below these erstwhile targets and looks like dipping back some more. Moves and closes are needed over these resistances at 107.91 Brent; 295.66/90 Heat; 300.12 RBOB; and 906.75 Gasoil to re-activate objectives above the market. The fact that the contracts are dipping back is no great surprise but the 5 day MAs must hold to keep the upside momentum. At the moment the contracts are a little too far above them for comfort and a dip back to narrow the gap is to be expected. RBOB once again holds the clues – back over 300.12 and the up-trend is kicking back in; below the b/b at 299.44 and expect more of a dip to near the 5 day around 296.77. This would cause the rest to lose value and approach their 5s too. In short – watch RBOB for guidance today. Meanwhile the action on the rest of the contracts is above the s/t MAs, the stochastics are positive, and the trend is up – it is not advised to be short. Buy dips to the 5s.

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Posted by Robin Bieber