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Watch RBOB at 251.86 – It holds the key to the next leg

Published Thursday, September 11th, 2014

Targets have been hit on the way lower over the past two days. Last night’s closes have green lighted further objectives lower on Brent to 96.75, valid whilst below 98.76; Heat to 272.50, valid whilst below 276.40; and Gasoil to 815.50 valid whilst below 835.00. These targets however are on hold until RBOB can move and then close (m/c) below 251.86 – this is the most important pivotal support on the board. A m/c below would open the flood gates for a further leg south both on it to 249.45 but would activate the afore-mentioned objectives on the rest of the contracts. WTI would need a m/c below 91.24 to activate a leg down to 89.33. Watch RBOB at 251.86 very carefully. Meanwhile the contracts have broken down out of the range and have started a down trend. They are below all the short term (s/t) MAs and the stochastics are negative. It is not advised to be long. WTI would acquire a target lower to 89.33 on a m/c below 91.24. Resistance is at 92.13, bull/bear (b/b) pivot, then the 5 day MA around 92.38, a sale. Brent has a target lower (RBOB allowing) to 96.75. Resistance is at the b/b pivot at 98.55 then the 5 day round 99.25.

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Posted by Robin Bieber