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Brent has joined WTI – Rest are holding supports

Published Thursday, July 31st, 2014

Brent decided to follow WTI as it broke out of its range on the downside. It closed below the 106.75/95 range support area and whilst it is below it should put the 105.59 and the 105.26/16 supports under pressure. The former is the daily low on the August contract on July 15 and the latter is the daily lows at the beginning of May. A close below the lower of them should send the price of this contract to 104.07, another range support. An eventual close back over 106.75/94 will make yesterday’s weakness look like a bear trap. In this case short positions are to be covered. After WTI had settled below its daily short-term M/As on Tuesday it headed towards the 100-day contract and 200-day continuation M/A at 100.30 and 99.88 respectively and closed below them. It should now put the 98.68 range support, the daily low on July 15, under pressure.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.