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Targets have been hit and closed below

Published Tuesday, January 6th, 2015

The relentless downtrend continues and bears are still in firm control of the market. Supports have been tested and shorts have probably taken profit over the course of yesterday only to re-establish short positions as these targets were closed below in most cases. The only notable exception is Brent which could not quite get down to its 52.25 long-term support area but has made a low at 52.28 this morning. A close below this support is a sell as in that case this contract is expected to fall down to 50.75, the monthly low in January 2007. An eventual rally up to the 55.48 (range) and 55.52 (5-day M/A) resistance area is also a sell and these shorts should only cut losses if the resistance were settled over. After testing the 52.40 target WTI headed straight to the next target level, the 50.47 range support.

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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.