Technical & Fundamental Oil Reports Specialists

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Confusing picture – Keep an eye on key supports and the 5 and 8s

Published Monday, October 27th, 2014

The contracts may well be trying to bottom out but they look precarious and rallies have little momentum. There is a lack of harmony – WTI, Heat and RBOB are all below the short term (s/t) MAs, whilst Brent and Gasoil have not closed below them all yet and are trying to hold. The stochastics are positive on all contracts, but wavering a bit on RBOB. The lack of harmony is the s/t MAs being confusing but at the same time the stochastics remaining positive. Rallies are a struggle, but now the question is whether the contracts can hold or not. That is not clear and it’s advised to be patient and wait for the situation to clarify – the action around certain key supports will give the answers. These are on WTI at 81.16 (b/b pivot); Brent 86.03/85.90 (b/b and 5 and 8s day MA); Heat 247.40 (b/b pivot); and Gasoil 735.25 (8 day MA). Moves and closes (m/c) below these key supports would give us objectives back to the recent lows

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Posted by Robin Bieber