Technical & Fundamental Oil Reports Specialists

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The contracts are indecisive

Published Wednesday, March 25th, 2015

The market is still lacking harmony and clear direction. Closes were mixed yesterday, some of the daily M/As are below the price action and some of them are acting as resistances. The 180.11 correction point on RBOB was singled out as the most important level to watch together with its 13-day M/A that is currently at 179.44. The close was right around these numbers and this morning the price of RBOB is in between these two levels. This provides us with no clue as far as the next leg of the contract is concerned. What seems to be certain is that on a close below 179.57 (5-day M/A) and 179.44 (the aforementioned 13-day M/A) the contract will be considered negative and we should see softer numbers down to the 8-day M/A support. The latter is presently at 177.95 and an eventual close below that will be deemed rather bearish. On the upside a convincing settlement over the 180.11 c/p resistance will support the contract and it could jump to the 34-day M/A at around 183.27 and the rest of the energy complex will be expected to follow suit. At the moment WTI is below the 13-day at around 47.71 but above the 5 and 8-day that are 46.86/53. A close above the former should send the price of this contract up to the 34-day at 49.03 whilst should the M/A support be settled below the 44.38 retracement level area would be shortly in sight.

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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.