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Upside potential developing – Watch RBOB at 262.96 for guidance

Published Monday, September 1st, 2014

The contracts finished the week on a positive note. There are targets higher on WTI to 96.46; Brent to 104.69; RBOB to 262.96 (hit overnight); and Gasoil to 870.75. Run length to these objectives, but also note that the resistance in the form of a 34 day MA at 262.96 on RBOB is the most important on the board. A move and close (m/c) over here is needed to take both it and the rest higher – watch it carefully. On an entirely different note it’s worth being aware that the weekly charts on Heat and Gasoil have stochastics that have just flipped positive. WTI and Brent have not quite made it yet. This is potentially an early warning that the market may be about to turn much higher – it’s early days yet but this type of move (weekly stochastics flipping positive) rarely gives false signals. They take time to develop, and this is another indicator to observe carefully. It is not advised to be short. WTI has a target higher to 96.46, valid whilst above the 5 day MA around 94.81. A m/c over 96.46 would take WTI up to the 34 day MAs around 97.07 and 98.19. A dip to the 5 day is a buy. Brent has an objective higher to 104.69/75, valid whilst above the 5 day MA around 102.80. The next objective would need a m/c over 105.09 (34 day) and is at 106.17.

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Posted by Robin Bieber