Technical & Fundamental Oil Reports Specialists

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Yesterday’s rally failed

Published Friday, April 10th, 2015

For most of the day the flavour of yesterday’s report was completely off the mark but it was somewhat vindicated towards the close. We saw intra-day rallies to the 34-day M/A resistances on Brent, Gasoil and Heating Oil and to the short-term daily M/As on WTI and RBOB. The last hour of trading, however, saw a fierce liquidation of intra-day length and the market lost significant value. The closes were not convincingly bearish but the bullish sentiment that prevailed through the day evaporated towards the close. Wednesday’s and Thursday’s performances put some kind of double-bottom on the daily charts and the market would turn undoubtedly bearish again if these supports are broken and closed below. This is 50.51/50.37 on WTI. Just below this level is the 13-day M/A at around 50.13. Below this support area the next target on the downside is the 47.05 range support and daily low on April 1. Bullish impetus would only come from a close over the highest of the daily short-term M/A, the 5-day at around 51.66. A close above it should push the price of this contract up to the 100-day M/A at 54.71.

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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.