Technical & Fundamental Oil Reports Specialists

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All targets higher hit – The bullish party is likely over

Published Wednesday, February 11th, 2015

The market has done everything it should have to the upside. It is time to be very careful indeed, and treat bullishness with great scepticism.  The price action over the last few days has completed a second price cycle – from moving over the 5, 8 and 13 day MAs to the 34 day MA (cycle one) to moving over the 34s to the 55 day MAs (cycle two). Only WTI failed to hit the 55s – key pivotal resistances, and now every contract (bar at the moment Gasoil) has hit the 55 day targets, faltered and closed below them. The market is shying away from these formidable 55 resistances and now testing the short term MA supports. The 55s were where all length should have been liquidated and now a totally neutral approach should be adopted until the next leg is clear. The party is over for the bulls unless there are moves confirmed by closes over the 55s at 59.51 Apr’ Brent; 185.50 Heat; and 157.05 RBOB. Mar’ Gasoil is still above its 55, around 555.50, but it can’t take the contracts up on its own. The stochastics are just positive but wavering and on weakness would flip negative. There is every reason to suspect lower numbers.

to read the rest of the report, please click here

Posted by Robin Bieber