Technical & Fundamental Oil Reports Specialists

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Up-trend, s/t MAs holding on dips – Higher later

Published Wednesday, May 21st, 2014

The intra-day weakness yesterday was totally absorbed by the short term (s/t) MAs and, depending on the contract was supported by either the 5, 8 or 13 day. This is text book up-trend action. WTI being the strongest contract dipped to the 5, held and rallied. Brent slid to the 200 and turned around. Heat through the 8 to the 13 and rallied and RBOB only to the 8 and found support. Gasoil is currently stuck between the 5 and 8s. The stochastics are positive but still wobbling a bit, but they can do that for some time and the market still run higher. The trend remains up, albeit faltering a bit. It is not advised to be short. WTI remains the only contract with a target higher – to 103.11. It virtually hit this yesterday with a high at 103.01. A move and close (m/c) over 103.11 would green light the next leg higher to 105.22. Support is around 102.14 (5 day), a buy, then 101.68 (8 day) also a buy. Length is safe whilst over the 8 day. Brent needs a m/c over the erstwhile target at 110.28 to green light a target higher to 110.91 then 112.39. The 110.28 level will be tricky resistance.

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Posted by Robin Bieber