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WTI is holding M/A and the rest range supports

Published Wednesday, July 23rd, 2014

If it was not for WTI then the flavour of this report would be negative. The NYMEX crude is holding up reasonably well, at least compared to the others therefore it is currently recommended to be patient and wait for developments. It is the only contract that is not below all of its short-term daily M/As. It is holding the 13 and 8-day. These are currently at 101.72 and 101.52. This area is the most important support today as on a close below it the whole complex will be expected to come lower in the near future. On such a move WTI itself should go and test the 100-day contract M/A at 100.10 with the potential to go as low as 98.68, last week’s low on the September contract. On the other hand, if the 8 and 13-day M/As hold today the contract should have a go at the 34-day at 103.29. A close over this resistance and above yesterday’s high at 103.45 would be considered bullish and should push the price up to the 106.60/64 range resistance area. The technical picture on the rest of the complex would turn positive on breaks and closes over the daily short-term M/As. The highest of them is the 13-day on Brent at around 107.93. On a close over it the test of the 200-day at 108.92 will be expected. Heating Oil would only turn bullish if the 13-day at 286.69 were settled above and in that case the 290.68 range resistance will be targeted.

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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.