Technical & Fundamental Oil Reports Specialists

Follow us

Recovery has completed a price cycle – be careful here. Market not harmonious.

Published Thursday, April 2nd, 2015

The contracts exceeded (my) expectations to the upside yesterday. A cynic might say that all the market has done is move from the bottom to the top of the range. A technician would note that all the contracts have done is rally over the short term MAs and completed a price cycle at resistance by moving up to a combination of the 34 and 55 day MAs and the odd c/p. These are potent resistances. There are no targets higher yet, and caution is advised with this pre-Easter break rally.  In order to have objectives above the market the key resistances – 34 and 55 day MAs and c/ps – need to be closed over. In addition, note that WTI and Brent have rallied to the 5 month MAs. These are at 49.69 WTI and 56.93 Brent. These long term MAs were moved below in July last year and have been solid resistance ever since. Treat these levels with respect. There’s a lot of resistance up here – c/ps, 34 and 55 day MAs – and the stochastics are not all positive – negative on three of the contracts. There is a lack of technical harmony. Stay neutral and patient.

to read the rest of the report, please click here

Posted by Robin Bieber