Technical & Fundamental Oil Reports Specialists

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Watch the 13 day MAs on WTI and RBOB. Down trend still intact

Published Thursday, January 15th, 2015

The contracts made a spirited recovery yesterday but there is no reason currently to change one’s bearish profile. We are merely witnessing a correction in an overall down trend, which is taking us up to the short term (s/t) MAs. Every time a similar recovery has occurred in the last six months it has all ended in tears at the assorted MAs. Usually the 5s are breached and then the trouble begins at the 8 and/or 13s. This is exactly what is currently happening. Heat remains below all the s/t MAs, and is the least impressive. WTI and RBOB are over both the 5 and 8s but have the tricky 13s to deal with. Both have already tested them and failed so far.  Brent is over the 5 but below the 8. In short, watch the MAs. Targets south are valid whilst still below the 8s and the most important resistances on the board are the 13s on WTI around 49.72 and RBOB around 137.08. Watch them – they are the key to the next leg.

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Posted by Robin Bieber