Technical & Fundamental Oil Reports Specialists

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Held key supports and targets. Still negative – Sell rallies

Published Wednesday, March 11th, 2015

Targets lower were hit on the way down on every contract yesterday. The move lower culminated in correction points (c/p) and/or 34 day MAs being hit and, as such, completed a slingshot (s/s) price cycle. There is only a target lower on WTI to 47.80. The rest have all hit their objectives and held – at 56.43 Brent (55 day MA); 181.41 and 180.84 Heat (c/p and 34 day); 180.11 RBOB (c/p and only missed by 20 points: and on 545.25 Apr’ Gasoil (34 day). These are levels to flatten out at and wait for developments. The next leg lower is not green lighted until there are moves confirmed by closes (m/c) below the aforementioned levels. At the moment the price cycle has been completed and it’s advised to wait for the m/cs below to sell, or take advantage of a leg up to the 5 day MAs to sell. WTI moved below the 34 day around 49.48 yesterday and thereby green lighted a leg down to the bottom of the range at 47.80. This has not been hit yet but as the rest have hit their targets covering shorts may not be stupid. A m/c below 47.80 would green light the next target lower to 44.37. Resistance is at 49.28 (b/b pivot) followed by 49.51 (5 and 34 day) and a sell.

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Posted by Robin Bieber