Technical & Fundamental Oil Reports Specialists

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Down trend condition but held quite well yesterday – Watch the 5s

Published Thursday, October 9th, 2014

The trend remains down but attempts to hold and recover are being made. At some point yesterday the downside momentum weakened and the contracts held, but this was no great surprise since the gap between the price action and the 5 day MA was at its widest round $2.00 p/bbl – this is too great a gap and this has now narrowed to around 50c – much more tenable conditions. The 5 day gap is always worth keeping an eye on in relentless and overcooked trend conditions. There are targets lower – to 86.46 WTI; 88.49 Brent; 252.69 Heat; 220.80 RBOB; and 729.00 Gasoil – but these are only valid whilst below the 5 day MAs around 88.78 WTI; 92.02 Brent; 260.02 Heat; 235.94 RBOB; and 775.50 Gasoil. Some of these MAs are likely to come under pressure later today. Use the 5s as pivotal levels for protection as m/cs over would very likely herald higher numbers.

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Posted by Robin Bieber