Technical & Fundamental Oil Reports Specialists

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Watch the s/t MAs – they hold all the clues

Published Tuesday, March 3rd, 2015

The market is very volatile and dangerous, but there are technical hand-holds – the s/t MAs. The most important level on the board yesterday was the 100 day MA on RBOB at 198.07 – high of 197.79 – and now at 197.46. This area was approached but comprehensively failed at. The results were varied but all contracts, including a largely de-linked WTI, dumped slingshot (s/s) fashion back down to the short term (s/t) MAs. For the most part the s/t MAs – the 5, 8 and 13s – are the key to the next leg.  Each contract is slightly different but the message is the same – watch the s/t MAs. They will act as either trap-doors to next support or springboards to the next resistance.  The odds are evens but my nose tells me that they are going to come under serious pressure again later. WTI fared better than the rest and, whilst erratic, pretty much went sideways ending the day down by only 17 cents, whilst Brent lost 304. WTI held the continuation 34 day MA yesterday, at 49.04, which was its slingshot (s/s) target, and rallied to close only 3cts shy of its 5 day. It is now above the 5 and 8 day combo (plus contract 34) around 49.71.

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Posted by Robin Bieber