Technical & Fundamental Oil Reports Specialists

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Watch RBOB at 300.12 – The 5 day is catching up with the price action

Published Friday, April 11th, 2014

The contracts softened a bit yesterday, which was not a huge surprise given the distance between the early numbers and the 5 day MAs. The market never likes being too far above (or below in an down trend) the 5 day MAs and it almost always results in the gap being narrowed. Such was the strength of the recent move higher that only Heat – the weakest contract – dipped low enough to test the 5s. These M/As remain as initial support below the market and the upside momentum is maintained whilst above them. RBOB’s support at 300.12 is the key. Whilst it is above here it has a target higher to 304.13 and will also keep the rest steady. It is the most important support on the board today. Meanwhile WTI also has target higher to 104.48 valid whilst above the 102.68/61 area. The trend is up. It is not advised to be short.

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Posted by Robin Bieber