Technical & Fundamental Oil Reports Specialists

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Up-trend conditions, buy dips to the 5s – do not be short

Published Monday, May 19th, 2014

The trend is up. Higher numbers are likely. Buy dips to the 5 day MAs, and on larger-than-expected declines buy weakness to the 8 day MAs. Run length to target areas. It is not advised to be short. The stochastics are positive and not too high yet. There are targets higher on the crudes to 103.11 on July WTI and 110.28 on Brent. The products have got more work to do yet, but a move and close (m/c) on RBOB over the c/p at 298.87 would flag upside and most likely take the rest of the products with it. July WTI has an objective to 103.11, valid whilst over the 5 day MA around 101.45. The b/b pivot comes in close to here at 101.37. The 8 day MA is around 100.75 and a buy on a larger than anticipated dip. Do not run length on a m/c below the 8 day. Brent has a target to 110.28 valid whilst over the 5 day around 109.33. The b/b pivot is close by at 109.47.

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Posted by Robin Bieber