Technical & Fundamental Oil Reports Specialists

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Good reason to feel trend is turning – Go flat

Published Tuesday, July 15th, 2014

The down trend looks like it may have exhausted itself. It’s too early to say this with huge conviction, but there are enough clues to encourage one to be flat. Firstly, every contract held key support on last night’s closes, thereby negating any objectives lower. Secondly, the stochastics have flipped positive – only just – on every contract but WTI, and this could be about to occur on WTI. Thirdly, Gasoil has moved over the key 5 day MA, and Heat and RBOB look like putting this MA under immediate pressure. Moves and closes (m/c) above on these contracts would suggest that the trend is turning or at least is due a correction up. With all this is mind it’s advised to go flat and wait for developments around the 5 day especially on Heat and RBOB. The trend has been down, but it’s now time to go flat, bank the cash, and be patient. WTI needs to hold over the important 100.79 (100 day) support, and in addition not close below 100.22 and then the 200 day at 99.93. The area from 100.22 down to 99.93 is well supported. Use 100.79 as a pivot, but don’t get sucked in by a dip below as this may be only an early temporary aberration.

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Posted by Robin Bieber