Technical & Fundamental Oil Reports Specialists

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The complex is turning bullish except RBOB

Published Thursday, July 24th, 2014

Yesterday it was WTI that prevented us from painting a negative technical picture as it was stronger on Tuesday. Today it is RBOB that is not allowing us from becoming unreservedly bullish since it lost value yesterday whilst the rest all closed higher. RBOB is still below all of its daily short-term M/As with the 5-day currently at 287.20, the 8-day at 287.78 and the 13-day at 290.19. The minimum requirement for this contract to turn positive is a close above the 8-day. Brent, Heating Oil and Gasoil all settled over resistances and have objectives higher. These objectives will remain valid unless the lowest of their respective daily short-term M/As are settled back below or the 200-day M/A on RBOB at 284.55 were closed below. The latter is the most important support across the board today and no long positions should be held on any of the contracts if it is above tonight’s settlement. Such a move could easily drag the whole complex lower. WTI bulls are advised to be flat now and only buy again either on a dip to the 13-day M/A at 101.81 or on close over the 34-day contract M/A at 103.31. Under the latter scenario we should see further strength up to the 34-day continuation M/A at 104.35.

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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.