Technical & Fundamental Oil Reports Specialists

Follow us

Watch the 34s on crudes; S/S targets hit – flatten out and wait

Published Thursday, July 3rd, 2014

The trend is down and kicking in with a vengeance. The brief half-hearted rally fell apart at the 5 day MAs yesterday and they were sell zones. I had thought WTI would do a bit better and rally to the 8, but it didn’t. It behaved like the rest and fell apart after failing at the 5. The crudes and Heat have all completed price cycles down to the 34s and are holding. These important and pivotal slingshot (s/s) supports are at 103.97 WTI and 110.92 Brent. In addition, Heat is holding the 200 day MA at 293.60 and c/p at 293.23. There are no further targets lower on anything whilst these supports hold on the crudes and Heat. We could easily witness a reaction back up from here – a rally to the 5s would be a sell, and moves and closes (m/c) below 34s and 200 supports would also be a sell. The long US weekend may cause some short covering today, so a rally to the 5s cannot be ruled out. Stay bearish but pick one’s levels carefully. WTI has hit and held its s/s target lower to the 34 at 103.97. It needs a m/c below here to sell for a leg down to 102.37 (100 day). Resistance is plentiful with assorted at 104.22 then 104.54 followed by 104.82 and then the 5 day and 50% c/p at 104.99 – a sell.

to read the rest of the report, please click here 

Posted by Robin Bieber