Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8 day MAs, sell a rally to the 13s. Recent lows imp’ support

Published Tuesday, December 23rd, 2014

The contracts failed to stay over the 8 day MAs yesterday and, as a result, moved lower, slingshot (s/s) fashion, to the 5 day MAs. These were also breached and closed below on every contract. This was not good but neither was it a catastrophe. The odds are now that if the contracts remain below the 5 day MAs, and currently WTI is very close to it and Gasoil above, then they will re-trace to the recent lows. It would need moves confirmed by closes (m/c) below these lows to green light the next leg lower. The reason for this somewhat muted bearish view, as opposed to a full on gung ho negative approach, is that the stochastics are all still positive and this is impeding a totally negative view. Until there are m/cs below the recent lows significant targets lower are on hold – however likely they may be down the road. Watch the 5 and 8s – they will provide clues. WTI is on its 5 day round 55.89 and below the 8 day round 56.26.

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Posted by Robin Bieber