Technical & Fundamental Oil Reports Specialists

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Still range bound – Watch the 34 day MA resistances

Published Thursday, September 4th, 2014

The contracts held and moved over key initial resistance pivots and then didn’t stop moving up until testing the recent top of the range, and the 34 day MAs in Heat and RBOB’s case. We witnessed a vicious “bear trap” and then a swift completion of yet another price cycle as the 34s were tested by Heat and RBOB. These are key resistances now at 285.87/286.60 Heat and 262.19 RBOB. These need to be closed over for any upside potential to be realised. Remember that last week when all looked pretty frisky both Heat and RBOB were struggling to make any serious impact on these 34s – they are the key to the next leg. Meanwhile the contracts are over the s/t MAs, with the exception of Brent, which has slipped just below, and the stochastics are positive. WTI is above all the s/t MAs and these are initial support from 94.78 area (5 day) down to 94.37 (8 day) and 94.05 (13). These need to hold on a dip, and slightly more importantly the 93.72 range support must not be closed below, or this contract dips further.

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Posted by Robin Bieber