Technical & Fundamental Oil Reports Specialists

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Technicals are turning bullish

Published Tuesday, February 3rd, 2015

However violent and volatile yesterday’s performance was the energy complex settled higher led by NYMEX products and important resistances were closed over. This, together with the facts that the daily slow stochastics are all positive and the daily short-term M/As were conclusively broken and closed above on Friday, makes the current technical picture much more positive than in the second half of last week. The rally of the last two days could still turn out to be a bull trap but at the moment it is not recommended to short the market. If anything then it is reasonable to be long on Brent, Heating Oil, RBOB and Gasoil and flat on WTI. The reason to say this is that the former four contracts all closed above their 34-day M/A resistances. Brent and Gasoil settled above both the contract and continuation ones at 53.82 and 53.27 and 504.75/499.75.

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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.