Technical & Fundamental Oil Reports Specialists

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A bit stuck – Watch the 5 and 8s

Published Monday, May 12th, 2014

The contracts are a bit stuck, but with a slight upwards flavour. The key will be the action around the short term (s/t) MAs, and in most cases the 5 and 8s. Brent, Heat and June Gasoil are all holding the 5 and 8s as support but are below the 13s. WTI is below the 5 and 13 but holding the 8, and RBOB is below them all, but the action around the 5 – the lowest MA around 290.21 – will be a good clue as to whether it is joining in a gently encouraging mood. The stochastics are all, with the exception of RBOB, positive. It is by no means a ‘dead cert’ but the contracts would look to have a bit more upside potential than the reverse. There are no targets either way yet – and it’s advised to be patient and wait for developments. WTI is above the 8 around 99.92 with the 100 day at 99.46 and c/p at 99.35. There are no targets lower whilst it is above 99.35. Resistance is at the 5 and 13 around 100.15/29. A move and close (m/c) over here would be positive, a buy, and suggest a leg higher to 100.91, the 34. Brent is above the 5 and 8s around 107.96 and 107.87.

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Posted by Robin Bieber