Technical & Fundamental Oil Reports Specialists

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Dip to the 8 day MAs. Watch them carefully. Trend still up but a bit tired

Published Tuesday, April 28th, 2015

The contracts began to look a bit tired yesterday and the inability to push on higher has made a cooling off dip very likely, and actually what is occurring at the moment. It would be premature and probably somewhat rash to assume that this morning’s dip has much follow through. As of last night’s closes all contracts, bar WTI, were above all the short term (s/t) MAs and with high but positive stochastics. This morning has WTI below all the s/t MAs and the rest are below the 5 day but above the 8 and 13s. This is typical of a market that is pausing for breath, easing a bit, and likely to give us a muted slingshot move lower. RBOB, in the meantime, is still above all the s/t MAs and looks ok whilst over the 5 day around 198.60. Further upside would be flagged by a move over the bull/bear pivot at 200.12. Keep an eye on RBOB today – it will provide guidance. The trend is up and merely calming down a bit. WTI is beginning to de-link and in a slightly different technical space from the rest. It looks vulnerable. It is below all the s/t MAs and in this condition could easily slide more. The lowest of the s/t MAs is the 13 around 56.46 – it needs to move and close (m/c) back over here in a hurry otherwise it heads south towards the 55.51 area – the continuation 13 day MA.

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Posted by Robin Bieber