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Another failure at resistances

Published Monday, January 26th, 2015

We had another go at the daily short-term and within that the 13-day M/A resistances on Friday. This attempt ended in yet another failure to punch conclusively through these resistances. Whilst Gasoil and RBOB managed close over the rest did not. To make matter worst the market is losing further value this morning because of the weekend developments in Greece. It looks like supports will now come under pressure and closes below them should put further downward pressure on the contracts. WTI closed below its 46.40 range support and is now testing its recent lows. They are 44.78 on the March contract and 44.20 on the continuation basis. Right between them is the very long-term support trend line at 44.39. If they were settle below tonight the next long-term downside objective will be green-lighted. This is the 61.8% correction point of the 1998-2206 uptrend at 36.33. Brent is flirting with its long-term trendline at 47.99 and should it be closed below lower numbers will be on the menu.

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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.