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More tests of resistance – Watch the 34s on Heat and RBOB

Published Wednesday, August 27th, 2014

The down trend is over, and has pretty much been so since this time last week. The contracts are now trying to push higher. Yesterday was pure text book slingshot action – over the 5 and 8s to make for the 13s on the weaker contracts and over the 13s and head for the 34s on Heat and RBOB. The closes were not quite good enough to green light targets higher but the contracts look like being in resistance testing mode from the outset today. The key to further upside is the action on the 13s on WTI around 94.51; Brent around 102.94 and Gasoil around 865.00; and at the 34s on the market leading Heat at 286.07/51 and RBOB at 278.16. These are the key – watch them carefully. The stochastics are positive with bullish divergence. Higher numbers are likely – it is not advised to be short. WTI has moved over the 5 and 8s, now support around 93.74 then 93.60. These need to hold and must be remained over by the close tonight. The 13 day MA is the key resistance around 94.51. WTI should make its way to here but there are no targets higher until the 13 is closed over, whereupon the objective becomes 96.40. Brent is similar, and has already tested its 13 day yesterday, breached it, but failed to close over. This MA is around 102.94 and a move and close (m/c) over would green light a target to 104.69.

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Posted by Robin Bieber