Technical & Fundamental Oil Reports Specialists

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Extreme care – Sit back and wait for harmony to return

Published Friday, July 11th, 2014

It is time to exercise extreme caution. The trend has been solidly down and the market has, daily, lost value. The bears have been firmly in control. The price action has been text book where every rally to the 5 day MAs has been a sell. Now, it’s time to be careful. There are no targets lower for the time being – the closes last night were all above the key resistances that had previously green lighted objectives below the market. In addition the stochastics have flipped positive on all contracts – only just, but it’s a warning, and it flags a lack of harmony within the key technical indicators. This lack of technical harmony negates any recommendation to sell on the rally to the 5 and 8 day MAs. If the contracts fail and close below support then the opportunity to sell at the 5 and 8s has been missed but the poor closes would be a sell. If, however, the stochastics have correctly flagged the turn then the alternative is that one is not caught short below the market. Therefore the advice is to sit on one’s hands today and wait for developments.

to read the rest of the report, please click here 

Posted by Robin Bieber