Technical & Fundamental Oil Reports Specialists

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At very serious resistance. Be careful!

Published Tuesday, April 7th, 2015

The market lacked technical harmony on Thursday and looked vulnerable. However, by yesterday the contracts had turned around and were in resistance testing mode again. The action is likely to be volatile and it’s advised to be very careful and patient. The contracts have reversed direction and have either tested or neared very significant resistance at 52.48 WTI; 58.04/06 Brent; 178.73 and 179.25 Heat; 184.87/92 RBOB; and 539.50 then 545.75 Gasoil.  These all represent the completion of a price cycle and there are no targets higher until they are moved and closed (m/c) over. It’s advised to exercise extreme care when near these strong resistances. WTI is well above all its short term (s/t) MAs and the gap between the price action and the 5 day MA is somewhat large, which normally does not last long. More alarming however is the strength at the resistance at 52.48 (high on 26/3/15). It needs a m/c over here to green light a leg up to the 100 day MA at 55.73. It’s advised to wait for this and not pre-empt.  There is no decent support until the 5 day around 50.15. WTI looks vulnerable to a dip whilst below 52.48.

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Posted by Robin Bieber