Technical & Fundamental Oil Reports Specialists

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Upside potential developing – Watch the 5s

Published Thursday, October 30th, 2014

The contracts continued the move higher yesterday, although giving back some of the gains, and closed over all the short term (s/t) MAs. The first 48 hours of any move contrary to the prevailing trend, i.e. in this case a break out north, is dangerous and needs to be handled with extreme care. However so long as the highest of the s/t MAs – the 5s – are remained over the momentum higher is maintained and there is further upside. The key 5 day MA on WTI is around 81.59; Brent 86.41; Dec’ Heat 249.08; Dec’ RBOB 215.92; and Gasoil 744.25. Upside momentum higher is maintained on staying over these levels. If this proves the case the contracts should head higher to first resistances/targets at 83.34 WTI; 88.49 Brent; 252.61 Dec’ Heat; 220.80 Dec’ RBOB; and 777.50 Gasoil. The stochastics are positive and would support such a move.

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Posted by Robin Bieber