Technical & Fundamental Oil Reports Specialists

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The odd sellable rally. Support just holding. Outlook negative.

Published Wednesday, April 1st, 2015

The technical picture hasn’t changed much. The contracts are just hanging on, in most cases just above key supports, and look fragile and vulnerable. The support is being eroded from the constant pressure but has, in most cases, held. The key support levels to watch today are at 47.56 WTI (13 day and just breached this morning); 54.57 Brent (c/p); 170.24 Heat (c/p); 176.58 then 175.16 RBOB (34 day then 50% c/p); 524.25 Gasoil (50% c/p). Both WTI and Gasoil have breached these levels overnight, but treat this violation warily – the first couple of hours in the morning can be misleading. The stochastics are pointing south. The short term (s/t) MAs, and in particular the 8 day, remain sales on rallies. Maintain a negative approach to the market. WTI needs to hold 47.56 (13 day MA) or it heads lower to 45.52. Rallies to the 5 and 8s around 48.56 are sales, and only a move confirmed by a close (m/c) over 48.56 would be constructive.

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Posted by Robin Bieber