Technical & Fundamental Oil Reports Specialists

Follow us

Further possible test of resistances

Published Tuesday, April 14th, 2015

With the exception of RBOB all the other contracts climbed higher and posted gains yesterday suggesting that the trend is now more bullish than bearish. Whether the lacklustre performance of the RBOB contract is an early warning signal that the price movements of the last two days is a bull trap remains to be seen but at the moment it is more attractive to be long than short. Those who acquired length at yesterday’s close are advised to run it up to the nearest resistance area but at the same time it is recommended not to be faint-hearted and be prepared to cut losses in case the complex dips and closes lower today. WTI closed above all of its daily short-term M/As therefore the next upside objective, the 100-day at around 54.25 has been validated. On the other hand a close below the highest of the M/As, the 8-day at around 51.53 will be a sign that not all is well with the mini-uptrend and in that case it is only reasonable to go flat. June Brent, which becomes the front-month tomorrow after the close, settled over the short and medium-term M/A for the second consecutive day. It shied away from the 100-day M/A yesterday but on another test of this resistance, which is currently at 60.87, longs ought to take profit and buy again if close above. These long positions should be protected if the 34-day at around 58.62 is settled back below.

to read the rest of the report, please click here

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.