Technical & Fundamental Oil Reports Specialists

Follow us

Watch RBOB for early clues

Published Thursday, April 17th, 2014

The contracts continued higher yesterday putting resistance under pressure and at the same time achieving targets higher on Brent, Heat and RBOB. Whilst resistance was put under pressure for a large part of the day the strength was not maintained and the closes were back below key levels. RBOB is the contract to watch for guidance. It needs to move over 304.13/15 to green light an immediate leg higher to 305.38 – a replay of yesterday – and it needs to hold the 5 day around 303.46 or it dips to the 8, around 302.12. In short, RBOB will give the clues as to the next immediate leg – watch it. Meanwhile, the trend is up, and it is not advised to be short. It’s highly likely that most of the pre-long weekend (Ukrainian) short covering has been done and the market will be more sedate today. WTI hit, breached, but failed to close over the key resistance at 104.48. A move and close (m/c) over here would green light the next leg up to 105.22. It faltered yesterday and made a slingshot (s/s) move from the 5 to the 8 and held.

To read the rest of the report, please click here 

Posted by Robin Bieber