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Down trend continues – Approaching and hitting long-term targets

Published Monday, January 5th, 2015

The trend is down, relentless, and not to be played against. There are targets lower, which have been valid for some time now, and these are to 52.40 WTI (hit on the 2nd Jan); 52.24 Brent; 174.49 Heat; 141.05 RBOB; and 512.75 Gasoil (hit on 31st Dec’). Shorts should continue to be run to these levels. It may be an idea to take some profits as WTI and Gasoil are hitting their objectives, but moves confirmed by closes (m/c) below 52.40 and 512.75 would green light further targets south. In the meantime, the trend is down and it is not advised to be long. Stick with the trend and sell rallies to the 5 and 8 day MAs. WTI hit its target to 52.40 (38.2% c/p of the move 32.40/114.83) on the 2nd Jan and closed below. The general participation on that day was low so it’s best to wait for the close today to tell us more. Suffice to say a m/c below 52.40 today would be a sell and would green light the next objective lower to 45.95 with the next c/p at 44.38. Sell rallies to the 5 and 8 day MAs around 53.07 and 54.14. Brent has an objective to 52.25 (38.2% c/p of 36.20/128.40). Run shorts to here. There is no serious support between 52.25 and current levels. Resistance is at the 5 day around 57.01 and the 8 day around 58.31 – both are sells.

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Posted by Robin Bieber