Technical & Fundamental Oil Reports Specialists

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Support held again – Watch RBOB and the 5 and 8s generally

Published Tuesday, October 28th, 2014

The contracts are in trouble but not breaking down. There is a lack of harmony – ie, struggling contracts and the stochastics, for the most part, are still positive. Combine that with the fact that key support has been tested and held on WTI and in particular on RBOB and there is good reason to remain neutral at current levels. Having held support the odds are now on tests of the s/t MAs – the 5 and 8s – again. The most important and pivotal support on the board is RBOB’s 50% long term c/p (of the move up starting in Dec’08 to April 2011 from 78.50 to 348.00) at 213.25. It held yesterday, albeit breached by 20 points, and is critical support. The contracts, less Brent and Gasoil, closed below the 5 and 8s last night but are likely to test them again today. They are like trapdoors and springboards at the moment – above and we head for the 13 day MAs; below and we head lower to the recent lows. It performed the latter scenario yesterday and held. WTI failed at the 5 and 8s yesterday and then headed lower towards the recent lows at 79.10, made a low at 79.44 and recovered

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Posted by Robin Bieber