Technical & Fundamental Oil Reports Specialists

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Upside intact whilst over the 5 day MAs. Keep a close eye on RBOB at 195.03/48.

Published Monday, April 20th, 2015

The technical picture has not changed that much from Friday – where Brent and Gasoil had both hit their targets to 64.42 and 584.25, and not closed over. The rest remain with objectives higher to 59.98 June WTI; 193.83 Heat; and 197.95 RBOB. These objectives remain valid whilst above the 5 day MAs. The 5 day MA gap has narrowed making current price levels more tenable. It is worrying that RBOB – a market leader – has been unable to make headway against the growing resistance around 195.03/48. This area has halted RBOB’s progress for three days in a row now and this is the fourth and it is still banging its head against this area – watch it carefully. Use 195.03/48 as a pivot – failure to punch through and expect a dip – break out above and expect more momentum north. The trend is up – stick with it, just exercise a bit of caution. June WTI has a target higher to 59.98. This is valid whilst it remains over the recent high and 5 day MA, today around 57.27/21. This area needs to hold in order for this contract to head higher. A dip below would make a test of the 8 day MA around 55.72 very possible. Brent hit its target to 64.42 last week and has no objective higher until it can move and close (m/c) over here, whereupon the objective would become the 67.84 area (8 month MA). Support is at the 5 day round 63.08 – this must hold or it dips to the 8 day round 61.37.

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Posted by Robin Bieber