Technical & Fundamental Oil Reports Specialists

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Watch RBOB very carefully as well as the 5 and 8 day MAs generally

Published Thursday, April 23rd, 2015

The contracts are not harmonious and care is advised. All but RBOB, (and WTI which is below the 5 and 8s), are between the 5 and 8 day MAs – below the 5 and above the 8. Whilst above the 8 the anticipated slingshot (s/s) move lower to the 13 day MA is on hold and whilst below the 5 any upside is capped until these 5s are moved and closed (m/c) over. So far so good…but RBOB is the fly in the ointment. Last night it closed over both the 5 and 8s and whilst in this condition is suggesting a re-test of the key resistance at 195.03 to 195.48/54. At the same time all contracts bar RBOB have negative stochastics. RBOB’s is positive. This all makes for a market where the contracts are not giving the same message. In addition RBOB has a habit of delivering early warning signals and if this is another one then it is suggesting more upside – the rest are not giving this message and the 5 and 8 day MAs are the key. It’s advised to stay neutral and watch RBOB. WTI is the only contract below the 5 and 8s co-located around 56.87.

to read the rest of the report, please click here

Posted by Robin Bieber