Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8 day MAs. They hold all the clues.

Published Tuesday, October 21st, 2014

The next leg will be totally determined by the action at the 5 and 8 day MAs. The contracts are being contained in each direction by these MAs. The 5s are support and the 8s resistance. This “containment” has developed over the last three trading days as the market has tried to hold, put in a bottom and rally. Moves confirmed by closes (m/c) below the 5s would be the signal for further weakness at least down to the recent lows. Conversely m/cs over the 8s would point to a slingshot (s/s) move to the 13 day MAs. The 5s are on Dec’ WTI around 81.76; Brent 85.39; Heat 248.01; RBOB 220.02; and Gasoil 731.75. The 8s are on Dec WTI around 82.53; Brent 86.55; Heat 249.87; RBOB 221.17; and Gasoil 741.50. RBOB should have done better yesterday and its lack of expected upside punch put pressure on both it and the rest.

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Posted by Robin Bieber