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Watch the 5 and 8s, still has upside potential

Published Friday, October 24th, 2014

The contracts are trying to bottom out and recover, but making heavy weather of it. The 5 and 8 day MAs are key supports – below them and the market heads back to the recent lows; above and there’ll be a rally to the 13 day MAs. This has already occurred on Heat two days ago but it lacked the punch to follow through. Last night all contracts closed over their 5 and 8 day MAs – overnight they are back in the their vicinity and testing them as support. Each contract is slightly different but in all cases the 5 and 8s are relevant – watch them for guidance on the next step. The 5 and 8s are also acting like trapdoors and springboards to either support or resistance – this happens when a market moves sideways and is undecided. The stochastics, in all cases, are positive and pointing to tests of resistance. WTI closed over its 5 and 8s last night but has slipped and is now just below them. They are co-located around 81.72. It would need a move confirmed by a close (m/c) over to keep the upside momentum going and point to a move higher to the 13 day round 82.80.

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Posted by Robin Bieber