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Serious test of resistance on Friday and this morning

Published Monday, April 13th, 2015

We saw a sharp, EIA triggered sell-off on Wednesday that was followed by a rally on Thursday which ran out of steam towards the close. Due to this failure at resistances it was said in Friday’s report that the oil complex turned from overwhelmingly bearish to cautiously bearish. Despite this slightly negative view the contracts strengthened once more on Friday and finished the week in positive territory. This performance was encouraging but no serious resistances were closed above. The whole complex turned from cautiously bearish to cautiously bullish and one more push to the upside today will likely send prices further higher tomorrow. WTI will need to settle over the 5-day at around 51.72 in order to have the 100-day M/A at 54.48 green-lighted as the next upside target, especially if the 52.48 range resistance is broken above. Bears will only start re-gaining control on a close below the lowest of the daily short-term M/As, the 13-day at around 50.44.

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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.