Technical & Fundamental Oil Reports Specialists

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Key supports holding – Early sniff of recovery, be careful

Published Friday, September 12th, 2014

The market is in a very interesting condition – highly volatile, suffering from significant loss of value, and extremely dangerous. However, all targets have, for the time being, been hit and held. There are no objectives lower whilst key pivotal supports at 92.50 WTI; 98.40 Nov’ Brent; 274.36 Heat; 251.86 RBOB; and 834.25 Oct’ Gasoil hold. Watch these levels carefully today – they are important. Meanwhile WTI has performed well and is the only contract to have moved and closed over the 5 day MA. The rest are, after a brief dip this morning, likely to move up to narrow the gap between the current price action and the 5 day. Traditionally contracts do not like it when the price action is too far away from the 5 day and the gap narrows – WTI is currently an example of this. Another reason to be very wary and careful is the WTI’s stochastic has moved positive with bullish divergence, and the rest, although negative, would be similar on a flat price move north. This is constructive and needs to be watched carefully. WTI is above the 5 day and key support at 92.55/50.

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Posted by Robin Bieber