Technical & Fundamental Oil Reports Specialists

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Up-trend but faltering – Watch the 8s on Brent and RBOB

Published Wednesday, May 28th, 2014

The up-trend on the lead contracts – WTI, Brent and RBOB – is intact, but faltering. Heat and Gasoil are in trouble and suffering more on this loss of momentum than the rest. It is advised to be careful. It is too soon to turn bearish but the fact is that the up-trend is experiencing a loss of momentum which is manifested by Brent and RBOB being below the 5 day but so far holding the 8s – key support today. Heat is below the 5 and 8 but holding the 13 (just – around 294.41), and Gasoil below all the short term MAs. Meanwhile WTI is above them all with the important 5 day around 104.08. The stochastics are negative on all but WTI. This is a pretty mixed technical bag, and lacks harmony. Watch the 8 and 13s – the next leg will depend entirely on them, and keep an eye on WTI at the 5 day. It’s too early to turn bearish but the odds are stacking in that direction. WTI has closed below the important and pivotal 104.22 and therefore has no target higher.

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Posted by Robin Bieber