Technical & Fundamental Oil Reports Specialists

Follow us

Good recovery – Watch RBOB at 162.20

Published Friday, February 20th, 2015

RBOB gave the early warning signal for some weakness and a dip around last Tuesday and Wednesday and the market faltered and ultimately slid, yesterday, to assorted MA supports and held. This was a classic slingshot (s/s) move – from one series of (MA) supports to the next. WTI slid from the 5, 8 and 13s straight to the 34 at 49.92, low of 49.92, and bounced. The rest were similar – Brent from the 5 and 8 to the 13 and then the 55 at 57.91 (low of 57.80) and then took off; Heat from the 5 to the 8, at 191.68 (low of 191.94) and rallied; RBOB from the 5, 8 and 13s to the 55 and bounced, although it penetrated the 55 by some way; and Gasoil from the 5 and 8 to the 13 around 559.75, low of 557.25, and ran up. The contracts have completed a slingshot move lower, and a price cycle, and held. This does not mean that they are out of danger, and there is more work to do yet. Be very careful at the resistances – they have clobbered the market before. The stochastics remain negative. WTI completed the s/s move from the s/t MAs to the 34, which it virtually held yesterday at 49.92 to the cent. It is now back up and into the teeth of the s/t MAs with the 8 and 13 around 52.22/18 and the 5 around 52.97. The 8 and 13 need to hold or it heads back to the 34. Holding the 8 and 13s points to a rally to the 5 and potentially the 55 around 53.59. Watch the 8 and 13s carefully today – they are a pivot.

to read the rest of the report, please click here

Posted by Robin Bieber