Technical & Fundamental Oil Reports Specialists

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Bear trap – be careful. Watch RBOB at 203.88.

Published Thursday, May 21st, 2015

The contracts held the key supports and rallied. This has created a “bear trap” – at least for the time being. There are no targets lower whilst these key supports hold. They are at on WTI at 58.69 (34 day MA) then 58.04 (8 month MA); Brent 64.56/49 (34 day MA and 8 month MA) then 64.35 (c/p); Heat 192.59 (5 month); RBOB 198.96 (200 day MA); and Gasoil 588.00 (8 month). The 34 day and 8 month MAs are strong and represent completion of price cycles. RBOB has shown its teeth and the bears should be very careful indeed. RBOB moved and closed (m/c) last night over all the short term (s/t) MAs. This is very important particularly if it’s another of its early warning signals. It has dipped a bit below the 8 day around 203.88 this morning, making this the most important resistance on the board today/. A m/c over would be generally bullish.

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Posted by Robin Bieber