Technical & Fundamental Oil Reports Specialists

Follow us

Bearish crude contracts, not so bearish products.

Published Friday, November 7th, 2014

The contracts were not singing from the same hymn sheet yesterday as WTI and Brent lost value whilst products finished the day higher. The market, in general, is still more on the negative side but there are a few warning signals that should make shorts think about covering their positions latest by the end of today’s trading and wait for developments. The first such signal is the above-mentioned product strength, especially RBOB. It closed above the 5-day that is presently at 210.71 and is testing its 8 and 13-day M/A resistances at 212.83 and 213.33. To put it simply, a close over these M/As is bullish, not only for this contract but for the whole complex. On the other hand, a close below the 5-day M/A support will re-affirm the bears’ faith and will re-validate the downside objective, the 206.03/205.95 range support.

to read the rest of the report, please click here 

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.