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Up-trend kicking in with s/s moves higher – Do not be short

Published Friday, July 18th, 2014

The down trend is buried. The up-trend has begun, albeit quite tentatively on all but WTI, and RBOB is hardly joining in. Intra-day (I/d) targets higher were hit on the way up yesterday on most contracts, and there are further objectives higher on all contracts, bar RBOB, conditional on the s/t MA supports holding. The objectives are on WTI to 104.02, valid whilst above 103.26, (Sep WTI hit its objective to 102.66 and needs a m/c over to green light the next objective to 103.60); Brent to 108.85 valid whilst above 107.90; Heat to 288.63 valid whilst above 286.76; and Gasoil to 890.00 valid whilst above 882.75. RBOB still needs to m/c over the 5 day around 289.53. The market is in the process of making slingshot (s/s) moves higher from one MA to the next, and now Brent, Heat and Gasoil need to stay over the 8s to have a pop at the 13s, and WTI over the 13 to reach for the 34. The stochastics are positive. It is not advised to be short. WTI has a target higher to the 34 day at 104.02. This is valid whilst above the 13 day around 102.67. It is in the process of completing a piece of classic s/s price action – from 5 to the 8 to the 13 and now on to the 34 – this is text book. A m/c over 104.27 (the 2nd 34 day) would green light a leg up to 106.00.

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Posted by Robin Bieber