Technical & Fundamental Oil Reports Specialists

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Watch the short-term MAs – They hold all the clues

Published Tuesday, April 1st, 2014

The contracts performed a classic slingshot (s/s) move yesterday – below the 5 day MAs down to the 8 and 13s, and then held. This is also text book action for an up-trend that is losing some momentum. The action today will be dominated by the s/t MAs – holding the 8 and 13s suggests re-tests of the 5s and a move over the 5s would indicate a further assault on the more serious resistance above the market. However a failure to hold the 8 and 13s would point to the up-trend faltering, possibly even finishing, and lower numbers to follow. Hence, the message is clear – watch the s/t MAs today. Meanwhile the stochastics are still positive but wavering a lot and need to be watched. We’re still in an up-trend – it is not advised to be short. WTI was the only contract to hold the 5 day MA. It didn’t bother the other s/t MAs.

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Posted by Robin Bieber