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Watch the 5 and 8s – Upside potential developing to the 13s but needs to stay over the 5 and 8s

Published Wednesday, October 22nd, 2014

The contracts have held the 5 day MAs and have yet to conclusively close over the 8 day MAs. Heat and RBOB were the only two yesterday to close above both the 5 and 8s. However, most contracts have kicked in overnight and have moved over the 8s, although RBOB has slid back a bit. The contracts need to be above both the 5 and 8s to have more upside potential. The key initial, but pivotal supports are on WTI around 82.26/18 (5 and 8); on Brent around 86.11/85.99 (8 and 5); Heat 249.60 (5 and 8); RBOB 220.50 and 221.20 (8 and 5); and Gasoil 738.50 and 734 00 (8 and 5). The next slingshot (s/s) leg higher to the 13s is green lighted on moves and closes over the 8s. The 13s are around 84.01 WTI; 88.28 Brent; 252.84 Heat; 225.22 RBOB; and 752.25 Gasoil. Watch the 5/8 combo very carefully today. The upside potential is assisted by positive stochastics. It is not advised to be short whilst over the 5 and 8s.

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Posted by Robin Bieber