Technical & Fundamental Oil Reports Specialists

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WTI doing ok, rest vulnerable; Stochs very low – Negative, but view not strong

Published Wednesday, May 7th, 2014

The contracts continued to display weakness yesterday, although this was pretty muted to non-evident on WTI, which after dipping to good support at 99.35 held and rallied. The rest were under pressure, and the closes last night gave us targets lower on all but WTI and Gasoil. Brent has an objective lower to 106.81, valid whilst below 107.31; Heat to 286.98 valid whilst below 290.50; and RBOB to 285.79 valid whilst below 289.85. However, be careful – the stochastic is negative but very low, and has flipped positive on WTI. This is a mild warning that the contracts may well be trying to hold – therefore keep stops tight and be disciplined with the slightly precarious shorts. Meanwhile the trend is down, and for the moment it is not advised to be long. Sell rallies to the 5 and 8s on all contracts but WTI – it has worked well for the last two weeks. This view would flip on it moving and closing (m/c) over 100.26. WTI is the only contract with a positive stochastic.

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Posted by Robin Bieber