Technical & Fundamental Oil Reports Specialists

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Further test of supports are likely today

Published Friday, May 9th, 2014

Not much changed from the technical perspective yesterday as the contracts drifted lower but did not close below resistance. Perhaps the most important development was that WTI played a little bit of catch-up with the rest of the contracts and not the other way round. Yesterday’s gently negative spin on immediate oil market technicals, therefore, is still valid. If you put all the daily short-term M/As and in some cases the 34 and 100-day M/As on the daily charts of each contracts you’ll have a good idea when this mildly bearish scenario is confirmed or when it becomes unjustified. On WTI it is still the area of the 34-day M/As that forms a major hurdle on the upside. They are at 100.88/101.35 and a close over them is bullish. During the sell-off yesterday the short-term M/A supports were duly tested but they held. They are at 100.42, 100.09 and 99.82. A close below the lowest of them, the 8-day is likely push the price of this contract down to last week’s low at 98.74.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.