Technical & Fundamental Oil Reports Specialists

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Apart from the odd dip the contracts maintain their upside potential

Published Monday, April 27th, 2015

The contracts, for the most part, performed well on Friday and held on to Thursday’s gains. WTI was the exception to this and there is a danger of a de-link between it and the rest. The WTI/Brent spread is evidence of this. The contracts – less WTI – are in good shape whilst the support holds at 64.42 Brent; 192.65 Heat (breached this morning); 197.95 RBOB; and 584.25 Gasoil.  They are also, less WTI, above the 5 and 8 day MAs. These could easily be re-tested on a dip back today, and may well be as the stochastics are a bit high and need to cool off. In the meantime whilst the support holds there are targets above the market on Brent to 67.91; RBOB to 206.29; and Gasoil to 601.75. Heat needs to move and close (m/c) over 193.83 to acquire a target higher. I mentioned the monthly stochastics on Friday and the fact that they had moved positive and were potentially giving the signal for much higher numbers. The last time they did this was in 2009 and the market rallied $20 p/bl. There is significant upside potential, and this is valid whilst above the 5 and 8s. WTI is vulnerable.  It is below the 8 day and range resistance around 57.24.

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Posted by Robin Bieber