Technical & Fundamental Oil Reports Specialists

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Higher, tests of resistances; Buy dips to the 5 and 8s

Published Tuesday, May 13th, 2014

The last line in yesterday’s report read “being a bit long would seem appropriate”. The view has not changed, and if anything the message today is to add to length on dips to support or good moves and closes over resistance for the next leg higher. We’re still caught in a bit of a range but it looks like the odds are that we’ll break out of this to the upside and that an uptrend is developing. The market held the 5 and 8 day MAs on the dip yesterday, and the contracts closed well. The stochastics are all positive with plenty of meat on the bone, i.e. they’re not too high yet. WTI held the 8 day MA on the lows yesterday and rallied well to close over all the short term (s/t) MAs. They are now buyable support from 100.43 (5 day) down to 100.12 (8 day). The odds are on tests of initial resistance at 100.98 (34 day) then 101.17 (c/p). A move and close (m/c) over 101.17 would green light a move higher firstly to 101.41, very modest, but then the low 103s.

to read the rest of the report, please click here 

Posted by Robin Bieber