Technical & Fundamental Oil Reports Specialists

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Heat explosive but at key resistance at 221.00. Rest a bit subdued.

Published Monday, February 23rd, 2015

We are witnessing an inharmonious market, which can often lead to difficulties. Heat, and to a much lesser extent the other products, are not on the same technical page as the crudes. Heat has gone into orbit and has little relation to anything. Mar’ Heat is up 929 points overnight and Apr’ Heat only 121. Mar’ Heat has hit the very potent resistance at 221.00 and stalled. This is a key level to watch today.  RBOB has closed over the key pivot at 162.60 and whilst over here has a good chance of reaching higher for 174.39.  Gasoil is over 574.00 and whilst above here has a good chance of reaching higher to 592.25. The crudes are unimpressive and still below assorted short term MAs. The absence of harmony could become cause confusion and one needs to be careful. RBOB over 162.60 helps, but Heat is faltering at 221.00, and the lack of enthusiasm on the crudes is still an issue.  WTI is sluggish. It is below all the short term (s/t) MAs having failed conclusively at them on Friday. It looks like heading lower to the 34 day at 49.73. Meanwhile there is a phalanx of s/t MA resistance from 51.83 (13) up to 52.10 (5,8). Only a move and close (m/c) over 52.10 would change the negative view. The stochastic is negative.

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Posted by Robin Bieber