Technical & Fundamental Oil Reports Specialists

Follow us

Rally to the 13-day M/As where the market should fail

Published Friday, January 2nd, 2015

Happy 2015 to all of our readers. The last day of 2014 finished on a negative tone as most of the contracts lost value on the day although the energy complex staged an impressive recovery from the day’s lows. There were two major technical developments on Wednesday, one of them is bearish and the other one is slightly but not conclusively encouraging. The first one is that the 200-month M/A supports were closed below on three out of the five contracts. This is the first time it has happened in more than 10 years therefore it has to be viewed as negative. These contracts at the levels are Brent (62.68), WTI (60.46) and Gasoil (542.25). The same indicator on Heating Oil is at 174.55, a long-term downside target whilst there is no 200-month M/A on RBOB. The second development is that four out of the five contracts tested their respective strong support levels before turning higher. These are the 52.24 support on WTI, the 56.10 range on Brent, the 513.25 level on Gasoil and 178.49 on Heating Oil. Only RBOB was far away from its 140.80 range support target.

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.