Technical & Fundamental Oil Reports Specialists

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Vulnerable. Lower very likely but watch the range supports.

Published Monday, March 9th, 2015

The market is in a precarious state. The contracts are below all the short term (s/t) MAs and all, but WTI, have negative stochastics. There’s a good case to be made for lower numbers, but the puzzle is have we slid  through the trap door of the s/t MAs and then merely going to test bottom of the range support and hold, or are we beginning the first phase of a new leg down. It’s too early to tell and the price action over the next two days should reveal all. Suffice to say it is not advised to be long. The contracts are experiencing a slingshot (s/s) move lower from failing at the s/t MAs and are testing the next logical levels of support – e.g the 34 day in WTI and Heat’s ‘s case. The next leg is the issue – let events unfurl and be careful. WTI has completed perfect s/s move lower from failing at the s/t MAs to making a bee line for the 34 day today around 49.41. This is text book action. A move confirmed by a close (m/c) below 49.41 would be a sale for a leg down to 47.80 – bottom of the range. The s/t MAs are clustered resistance above the market around 49.93 (8 and 34) followed by 50.14/38 (13 and 5) with the 55 at 50.97.

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Posted by Robin Bieber