Technical & Fundamental Oil Reports Specialists

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Watch RBOB – It is the key

Published Wednesday, April 16th, 2014

The next leg will be determined by RBOB and its performance at the support around 302.60 and the resistance at 304.13. The rest will spin around these numbers. The trend is up at the moment. It is not advised to be short. The dip yesterday was contained by the 5 day MA on WTI, which on failing slid to the 8 and the 5 held on Brent and RBOB. All contracts have so far closed over the 5 day. It would not be a great surprise to see the 5 fail and a move lower to the 8 follow. The stochastics are high, in some cases wavering, but still positive. The key is RBOB. WTI wobbled a bit yesterday in that it failed to hold the 5 initially then dipped to the 8 and rallied. It closed over the 5 – just. It has already hit its target higher to 104.48 on Friday and Monday and did not close over. There are no objectives higher until 104.48 is moved and closed over and then the target becomes 105.22. Support is at the 5 day around 103.75 – this must hold or it has another s/s move lower to the 8 around 103.17 in store for us. Only a close below the 8 would be bearish.

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Posted by Robin Bieber