Technical & Fundamental Oil Reports Specialists

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The 5 and 8s will determine the next leg

Published Friday, June 6th, 2014

The contracts started the day yesterday with no targets lower as support, for the most part, had held. The move on RBOB over the 50% c/p at 293.51 was an early warning signal that we may be due firmer numbers, and that is what transpired. The action in the latter part of the day took the contracts up to the 5 day MAs – the first serious resistance, which was pretty much where the market settled. There is a degree of follow-through this morning and all contracts bar WTI are above the 5s but below the 8s. The key now is the action around these two s/t MAs – they will quite simply determine the next leg, and were RBOB to move over the 8 day around 296.31 the writing would be on the wall for the rest – higher. WTI is at the 5 day around 102.56. A move over here would make a test of the 8 around 102.72 very likely. The 13 is further resistance around 103.11. The next leg will be determined by the action today around the 5. WTI is ok so long as it does not close below the c/p at 102.06, and would only acquire a target lower on a m/c below 101.85.

to read the rest of the report, please click here 

Posted by Robin Bieber