Technical & Fundamental Oil Reports Specialists

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Test of resistance, but be careful up here until m/cs over these key resistances

Published Friday, February 13th, 2015

The market recovered swiftly and viciously yesterday and appears set to put resistance under further pressure. Heat is the only contract to have broken out and if the market is to go higher then it will need the rest to kick in over the range resistances at 54.24 WTI; 60.08 Brent; 162.60 RBOB; and 574.00 Gasoil. These could easily find themselves under pressure early today, but it’s the closes tonight that count. Yesterday’s performance has somewhat altered the immediate technical perspective. All contracts are now over the 5 and 8 day MAs, and also all, with the exception of WTI, are over the 55 day MAs. The stochastics have flipped positive on all but WTI. Yesterday’s action was a surprise to me, but the action needs to be kept in perspective – we are up and at range resistance, and not much else yet. Much like there were no targets lower yesterday morning after the 13 day MAs had held on the dip so are there no targets higher yet. This would change on moves confirmed by closes (m/c) over the range resistances. This rally may well not follow through – tread with care. WTI is above the 5 and 8s but below key range resistance and 55 day MA at 54.24/34. This area is extremely hazardous. Downside potential is on hold until this contract m/cs below the 5 and 8s, whereupon lower numbers would be expected. Right now it and others are in technical no-man’s land.

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Posted by Robin Bieber