Technical & Fundamental Oil Reports Specialists

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Down-trend kicking in again – Sell rallies or poor closes for the next leg lower

Published Thursday, June 5th, 2014

The attempt to break higher yesterday failed. The day started with a strong feeling that the down trend, which had been in place now for a few days, was going to be challenged, and with the stochastics wavering etc. the odds were on an attempt to recover. The day started with no targets lower – support had held. We duly got the rally – a perfect correction up to the s/t MAs and failed. Only one contract – WTI – breached the MAs, the rest failed at either the 5 or the 8s. The result was poor closes but as yet no targets lower. Both Heat and Gasoil look candidates to head for lows below the market. The rest need some more poor closes today. The down trend is back and it is not advised to be long. The s/t MAs are a sell. WTI breached the s/t MAs on the rally yesterday, but ran out of steam and closed poorly. It now needs a move and close (m/c) below 101.90 to green light a target lower to the 101.40/30 area. A m/c below 101.30 would be bearish and give us another target south to 100.54.

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Posted by Robin Bieber