Technical & Fundamental Oil Reports Specialists

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Back to the lower end of the range, no targets either way – Watch RBOB

Published Monday, September 8th, 2014

The contracts remain range bound. On Friday they were in the same range but testing resistance today they are at the other end and in support testing mode. Friday witnessed a failure at resistance with RBOB’s 34 day being the most important resistance on the board and a subsequent failure to hold the short term (s/t) MAs, which then acted like trapdoors to support, which is where we are now. There are no targets lower whilst the key bottom of the range recent lows hold. These are at 92.50 WTI; 100.17 Brent; 280.80 then 279.35 Heat; 257.53 then 253.91 (and then 251.86) RBOB; and 852.50 then 848.00 Gasoil. These are the bottom end of the range and there are no targets lower until they are closed below. RBOB is only in the middle of the recent range. Watch RBOB carefully for guidance. WTI has held the support area at 92.50 – it neared it with a low at 92.85. It has no target lower whilst 92.50 holds and it would need a move confirmed by a close (m/c) below 92.50 to green light the next leg down to 91.77. WTI remains under pressure whilst below 93.72 and then it has the s/t MAs to deal with starting round 93.93 and running up to 94.25. These are dangerous but a m/c over would point to yet another test of the upper end of the range.

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Posted by Robin Bieber