Technical & Fundamental Oil Reports Specialists

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Watch the key support levels – “Bear trap” alert

Published Wednesday, April 2nd, 2014

The up-trend was mortally wounded by the move below the lowest of the short term MAs – the 13s – yesterday. This invalidated reasons to be long and gave one the sell signal to join in the slingshot (s/s) move to lower support and intra-day (i/d) targets. This move provided price carnage and extremely unpleasant market conditions. The dump lower took us right down to the s/s targets some way below the market at 99.69/86 WTI; 106.03 then 105.41 Brent; 287.40 Heat; 285.84 RBOB; and 885.00 then 884.00 Gasoil. All these were closed over (WTI in the middle) and held. They are the key to the next leg – are we going to plummet further or have we hit the targets and now we rally and it’s a bear trap? I don’t know the answers but those support levels are the absolute key to the next leg, and whilst they hold there are no objectives south. A rally and close back over 99.78 WTI; 106.03 Brent; 290.68/291.13 Heat; 288.78 RBOB; and 894.00 Gasoil would indicate a “bear trap” and those short should be worried.

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Posted by Robin Bieber