Technical & Fundamental Oil Reports Specialists

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At very important supports. Bear trap alert!

Published Wednesday, May 20th, 2015

Yesterday was not a good one for the market. We are now teetering on the edge of a bearish precipice, but are holding key levels. The most important support on the board today is RBOB at 199.29, the 200 day MA. This needs to hold or the contracts will be submerged under a bearish wave. In addition, there are other very important key levels. WTI and Brent have completed a perfect slingshot move from the short term MAs to the 34 day MAs. These are providing key target support at 58.46 WTI and 64.35 Brent. The 34s are also at 190.35 Heat, and 580.25 Gasoil. In particular, note the crudes here. Also the crudes are holding the long term important 8 month MAs at 57.97 WTI and 64.33 Brent. Gasoil’s 8 month is at 587.75. Heat held its 5 month MA at 192.43 (low 192.50) yesterday. In short, there’s plenty for “bear trap” conspiracy theorists to get their teeth into here. Be very careful indeed – we need moves confirmed by closes (m/c) below these critical levels to green light further weakness. The market has completed price cycle – be careful.

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Posted by Robin Bieber