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WTI is negative – The rest is still stuck in range

Published Wednesday, July 30th, 2014

The headline says it all. WTI is detaching itself from the rest of the contracts. It broke and closed below the lowest of the daily short-term M/As, the 13-day that is currently at 101.61, very close to the 5-day M/A at 101.57. Its daily slow stochastics are pointing south. The contract now should test its 100-day contract and 200-day continuation M/As at 100.28 and 99.90 respectively. A close below the latter will boost the confidence of the bears. Below the 200-day M/A there is nothing really that could stop this contract from falling to the July low at 98.68. Current shorts are only likely to liquidate on a close above the 5 and 13-day M/A resistances, and above the 8-day at around 102.03. Above the 8-day this contract should jump to the 34-day at 103.27 and to the 103.65 range. As for the rest there is no change from yesterday. Brent remains range-bound whilst between the 106.94/75 support and the 108.60/62 resistance areas.

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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.