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Dip that should hold. Watch RBOB. Stick with the trend.

Published Tuesday, May 5th, 2015

The immediate key to the next leg in this long term overall up-trend is RBOB. It hit both its 200 day MA at 203.75 and also as good as reached its longer term target to 206.18 (c/p) with a high yesterday to 206.05, before sliding to move and close (m/c) back below 203.75. RBOB has completed a price recycle – the rest have not. However, RBOB frequently gives very good early warning signals that it has proven very wise to give credence to over the years. It is likely telling us that we are due to dip some – down to the 8 maybe the 13 day MAs – before trying to move higher again. If the 8s hold the targets on the other contracts remain valid. These are to 61.22 WTI; 67.71 Brent; 203 .11 Heat; and 611.00 Gasoil. The clue that the market is moving back up again would be firstly the 8 day MAs holding and secondly RBOB m/cing over the 200 day MA at 203.75. Watch these levels today. WTI has an objective to 61.22, the 200 month MA, valid whilst over the 8 day MA around 58.29. It also has the 13 day as further support around 57.85.

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Posted by Robin Bieber