Technical & Fundamental Oil Reports Specialists

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“Ursus insidiarium” – Now watch the 5s and RBOB

Published Friday, April 4th, 2014

The market held key supports and rallied yesterday. The last two days was a good example of a forty eight hour “ursus insidiarum” (bear trap) experience. Those bulls who are currently high fiving the relief of higher numbers and the potential for even more should be careful – the market is by no means out of the woods yet. The contracts suffered an extremely nasty dump but have held key supports and moved higher. There are now some poorly priced shorts in the market, but the next leg higher is not assured – all we have done so far is negate downside potential as supports have held. The key to the next leg is today’s action at the 5 day MAs and RBOB. A move and close over the 5 day MAs would be the next nail in the bears’ coffin. These were neared but not troubled yesterday, but now are pivotal levels in the “must watch” category. Yesterday I said markets do not like being too far away from the 5 day MAs in any move – well, now we’re right at them. Watch them carefully – they are the key to the next leg.

To read the rest of the report, please click here 

Posted by Robin Bieber