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The trend is down – run shorts to target areas; Sell rallies to the 5-day MAs

Published Wednesday, July 9th, 2014

The trend is down. It is not advised to be long. Targets lower were hit yesterday and the closes were poor enough for there to be valid objectives below the market on all but WTI. These objectives are on Brent to 108.53 Brent; Heat 285.38; RBOB 291.50; and Gasoil 883.25. Run shorts to these levels, and re-short on moves and then closes (m/c) below these levels for the next leg south. In addition, sell rallies to the 5 day MAs on all contracts but WTI. There are better contracts to be short than WTI, which is holding and doing relatively well. The stochastics are negative and low, but they can remain in the latter condition for quite some time and the market still head lower. WTI has no target lower. It is holding the key 103.44 c/p support. It would need a m/c below here to green light a leg down to 102.50. However, there are probably better contracts to be short than WTI.

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Posted by Robin Bieber