Technical & Fundamental Oil Reports Specialists

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Good performance. Targets being hit overnight. Watch key levels carefully.

Published Thursday, March 26th, 2015

RBOB’s price action for the past two days has been pretty positive and had been suggesting a move higher, which was contagious and encouraged the rest higher. By last night RBOB had made a slingshot (s/s) move from the short term (s/t) MAs higher to its upper target at the 34 day around 183.37, and closed over, thereby green lighting the next objective to 187.72 (100 day MA). This was hit overnight. RBOB’s action provided an example for the rest, which was duly followed. All contracts have hit their targets higher overnight. Upside momentum is developing, but key erstwhile targets and now support levels must hold. The contracts could easily correct back a bit, particularly as they are some way above the – normally – price hugging 5 day MAs. WTI closed over the s/t MAs and as a result had a target to 50.25 (55 day) then 50.77 (34 day). These were both hit overnight and the advice is to go flat and wait. Buy a m/c over 50.77 for a leg higher to the long term c/p at 52.40. The upside momentum is intact whilst over 50.77 – watch this level carefully. WTI is currently a little too far above the 5 day round 48.23, for comfort – be careful

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Posted by Robin Bieber