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Trend up but faltering a bit, WTI ok – Watch the 5 and 8s

Published Tuesday, May 20th, 2014

The trend remains up, but crude and products are not moving harmoniously. WTI has a target to 103.11. It is the only contract with an objective higher. Brent hit its objective to 110.28 and closed below. The rest faltered and failed at resistance and are showing little upwards momentum. The stochastics are still positive, but wobbling on the products. Heat and Gasoil have both slipped to close below their 5 day MAs, which is a pointer towards a loss of upside momentum. The rest are, at the moment, holding the 5s, and a dip to these are a buy on the crudes. The key will be RBOB’s action around 296.79 (5 day) and 296.64 (50% c/p). A failure to hold the latter would point to a general loss of upside momentum and a further dip. As such 296.64 is the most important support on the board – observe closely for clues to the next leg. WTI has an objective to 103.11, valid whilst above the 5 day around 101.76. The 8 day is around 101.14, a buy.

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Posted by Robin Bieber