Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8s – They hold all the clues

Published Tuesday, June 24th, 2014

The trend is in trouble, but by no means turned or broken yet. We are witnessing text book slingshot (s/s) action where an up-trend loses momentum and slides below the 5s and down to the 8s. This is exactly what is occurring on Brent, Heat and RBOB and the key to the next leg is what occurs at the 5 and 8s. The latter are key support around 113.86 Brent; 302.64 Heat; and 309.81 RBOB. WTI and Gasoil are below both the 5 and the 8s but are above the 13s – the target should the rest fail at the 8s. In the meantime the 5s are the key resistance on Brent around 114.41; Heat 304.16 and RBOB at 311.29. If the contracts bounce off the 8s and move and close (m/c) over the 5s then they should head straight back to the recent highs and the up-trend will be deemed to be kicking back in. The fly in the ointment to a recovery is that the stochastics are all negative (only just and recent) and this is going to make a rally hard workWTI is below the 5 and 8s co-located around 106.08, and whilst it’s in this condition the odds are on lower numbers down to the 13 around 105.16

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Posted by Robin Bieber