Technical & Fundamental Oil Reports Specialists

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Attempts to bottom out in place – Watch the 8s

Published Tuesday, August 12th, 2014

The contracts are trying to hold and all but Brent are managing quite well. WTI is above both the 5 and 8 day MAs, with the rest only holding the 8. Brent is below all the short term (s/t) MAs and needs to move back over them, at least the 5 and 8s, in a hurry. The stochastics are positive on all but Brent. The contracts have lost a lot of value since the highs of mid-June and are now trying to bottom out. Becoming bullish too soon has its hazards and it’s not been advised to be long for around two months. However there may also be not much left to get one’s teeth into on the bearish bone, and it’s advised to flatten out and watch the action around the 8 day MAs and good support around here. Failures however to hold support would make the contracts look very vulnerable again. WTI is above the 8 around 97.67 and the 5 around 97.56. These must hold or its heads south to test the 200 day at 97.15 and potentially the strong range support at 96.55.

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Posted by Robin Bieber