Technical & Fundamental Oil Reports Specialists

Follow us

Watch the key supports and RBOB – We’re holding at the moment

Published Thursday, April 3rd, 2014

Although the market weakened yesterday the next level of supports held. There are currently no targets lower. The danger of a “bear trap” persists – they normally have a life span of one and sometimes two days. RBOB remains the most important contract on the board to watch for guidance and it has tested, breached, but then held, and closed over, the key range support at 284.65 and it has also closed back over the 200 day MA at 285.86. At the same time it was the only contract to close over its b/b pivot at 285.03. Whilst by no means a confirmation that the market wants to recover and go higher this is a warning that at least the contracts are holding. Add to this the fact that virtually all the contracts are a long way below the 5 day MAs – something that does not happen for long as the contracts like to be nestled up close to this MA – and one has the ingredients for not only holding but some recovery too. Closes back below the key support would negate this mildly positive view. WTI has held the key c/p at 99.00. Whilst above here it has no target lower.

To read the rest of the report, please click here 

Posted by Robin Bieber