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Supports are expected to be under pressure today

Published Monday, August 11th, 2014

Doubts about the sustainability of Friday’s morning strength proved to be justified as all the contracts settled lower on the day with the exception of WTIbut even the NYMEX crude oil contract closed 80 cents/bbl off the day’s high. The bold numbers in the resistance column below shows what levels need to be closed over in order to turn bullish. They are the 13-day M/As. It is currently at 99.12 on WTI and on a close above the contract should rally up to the 100-day at 100.44. On Brent the same resistance is at 106.02. Only a close above it is a buy as in that case the test of the 200-day at 106.93 and possibly the 100-day at 108.02 will be expected. Heatwill not turn bullish unless the 288.56 level is below tonight’s close. On such a move the Friday high at 291.68 and the range resistance at 292.75 will be targeted. The 13-day on RBOB is around 278.02 and the next strong level above this is the 200-day at 281.04. September Gasoil which will become the front-month tomorrow has the 13-day at 887.00 and this contract is likely test the 895.75 range and 34-day M/A resistance area if closed over. Given the general technical failure to punch higher on Friday, however, it would not be surprising to see market having a go at the supports.

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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.