Technical & Fundamental Oil Reports Specialists

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At extremely dangerous resistances – the 34 and 100s. Be careful.

Published Wednesday, April 8th, 2015

The market exploded in a northerly direction yesterday but there are still concerns about further upside potential. The price action was positive and the closes were, for the most part, constructive. Most of the contracts have, or are in the process of, completing a price cycle from the short term (s/t) MAs to the 34 and or 100 day MAs. The crudes have hit their targets higher to the 100s, and the rest are dealing with the 34s. These key resistances are at 54.20 WTI; 59.26 Brent; 178.50 Heat; 183.50 (34) then 184.41 (100) RBOB; and 545.00 and 550.75 (both 34s) Gasoil. These are the logical extent of this move higher and are the culmination of a price cycle. Exercise extreme care at these levels – they are potent and dangerous. In the meantime the contracts are above all the s/t MAs and the stochastics are positive. WTI had a good day yesterday and virtually hit its target higher to the 100 day MA today at 54.20. It has a further 100 day MA (contract) at 55.51. A move confirmed by a close over (m/c) 54.20 would green light an immediate target higher to 55.51. They are both very strong resistance. Support is at 52.48 and this needs to hold or this contract will slide to test the s/t MAs starting around 51.66.

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Posted by Robin Bieber