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Downtrend – sell rallies to the s/t MAs; Keep an eye on the 100 monthers

Published Thursday, October 2nd, 2014

The down-trend continues. Rallies to the short term (s/t) MAs – the 5, 8 and 13s – continue to be sales. It is not advised to be long. At the moment the contracts are clinging on to support and most do not have targets lower for the next leg down. This is probably merely a temporary state of affairs but the next move lower is not green lighted until there are moves confirmed by closes (m/c) below the pivotal supports at 90.43/36 WTI; 94.24 Brent; 266.05 Heat; 244.40 RBOB; and 791.75 Gasoil. Brent and Heat closed just below these levels last night but are trying hard to hold this morning. Keep an eye on the 100 month MAs – they are making a rare appearance on the stage. The last time they were relevant was in 2009 and the move over them heralded stronger numbers. They are now being approached as long term and important support and are at 86.49 WTI; 92.35 Brent; 252.74 Heat; 244.95 RBOB; and 791.75 Gasoil. Extreme care is advised around these long term MAs.

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Posted by Robin Bieber