Technical & Fundamental Oil Reports Specialists

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Published Wednesday, October 8th, 2014

The contracts failed again yesterday. The promising rally was booted off the stage by the 5 day MAs and the contracts sank and closed, in all cases bar Brent, below key supports, thereby green lighting further targets lower. Brent managed to close just above its key long term 50% c/p at 91.85 but it is below here now, and whilst this remains the case it has a target lower to 88.49. The rest all have valid objectives lower – on WTI to 87.85 (old low) then 86.46 (100 month MA), valid whilst below 89.84; Heat to 252.69 (100 month MA) valid whilst below 259.45; RBOB to 220.80 (long term 50% c/p of 363.10/78.50) valid whilst below 235.05; and Gasoil to 729.00 (long term 38.2% c/p of 1339.25/351.50), valid whilst below the 5 day around 778.75. Shorts should be run to targets levels, but use the validation levels as protection. The stochastics are negative. The down trend is now turning very nasty and looks like it has further to go – the market looks  poor if the crudes remain below the key long term 50% c/p pivots 89.84 WTI and 91.85 Brent. Maximum pain is being inflicted. Bottom pickers are becoming an increasingly endangered species. Do not be long.

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Posted by Robin Bieber