Technical & Fundamental Oil Reports Specialists

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Down-trend over, RBOB leading – watch it carefully

Published Tuesday, August 26th, 2014

By Wednesday last week RBOB was giving early warning signals that the move lower was losing momentum and that further downside was unlikely. RBOB was the first to move over the 5 and 8 day MAs, the next day it moved over the 13, and had a bullishly diverging positive stochastic. Since then the contracts have pretty much turned and firmed – thereby amongst other things validating RBOB’s signal and also confirming the view that keeping an eye on RBOB is a “must”. Meanwhile the contracts have gently strengthened and, with the exception of WTI, have moved over the 5 and 8 day MAs and are looking to push higher to the 13s. RBOB is above all the short term (s/t) MAs and should now head for the 34 day around 278.61. The stochastics are all positive, some with bullish divergence. The 5 and 8s must hold to maintain a positive stance. It is not advised to be short. WTI is the weakest link. It has no target lower but needs to move and close (m/c) over the 5 and 8 day MAs which are resistance around 93.59 and 93.74.

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Posted by Robin Bieber