Technical & Fundamental Oil Reports Specialists

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Bearish picture developing – It’s not advised to be long

Published Tuesday, March 10th, 2015

The market looks increasingly fragile. All contracts, less WTI, are below the short term (s/t) MAs and WTI closed last night only one cent over the 8 and five cents over the 34 – hardly convincing but just enough. All contracts, bar WTI, have negative stochastics. A bearish picture is building and it is not advised to be long – rather sell rallies to the s/t MAs or run shorts where valid on Brent to 57.68; Heat to 182.58; and Gasoil to 555.50 (valid whilst below 574.00). The contracts are testing and beginning to falter at the bottom of the range – be careful. WTI is the only contract that looks half respectable. It closed just above the 8 and 34 day MAs last night and must stay over the 13 and 34 at 50.02 today. This is the critical level to watch today. A move confirmed by a close (m/c) below would make a re-test of the continuation 34 day at 49.53 very likely. It only acquires a target lower, to 47.80, on a m/c below 49.53. Resistance is at the clustered s/t MAs from 50.23 up to 50.39. Watch the s/t MAs today – they will give us the next leg.

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Posted by Robin Bieber