Technical & Fundamental Oil Reports Specialists

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Watch RBOB’s 100 day MA at 196.37 and keep an eye on the s/t MAs

Published Thursday, March 5th, 2015

WTI is de-linked from the rest and looks like firming more to test the long term c/p at 52.40. The rest are stuck in a range, struggling, and largely directionless. They are clinging on to their short term (s/t) MAs – ebbing and flowing around them – and have no upside potential whilst RBOB is below the 100 day MA at 196.37the most important resistance on the board today. There is no downside either until the contracts move and close (m/c) below all the s/t MAs. The only one to have done this is Heat and that is not enough on its own to give a clear signal of general intent.  There continues to be disharmony with the erratic action around the s/t MAs and the negative stochastics. WTI is the jewel in the crown and alone looks like heading higher. It is de-linked from the rest.  It has finally closed above all the s/t MAs, including the 55 day round 51.26 today. It should now head for the long term c/p at 52.40 (38.2% of 10.35/78.40) and a m/c over here would green light a target higher to 55.05. Watch 52.40 carefully – it could be troublesome. Support after the 55 day is at the congested s/t MAs spanning 50.83 (13) down to 50.20 (8 day). WTI is fine so long as it stays over the s/t MAs. The rest are not so positive.

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Posted by Robin Bieber