Technical & Fundamental Oil Reports Specialists

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Dip then higher – Stick with the trend

Published Friday, May 1st, 2015

The trend kicked in again yesterday after pausing briefly for breath earlier in the week. The signal for this was all the 5 day MAs holding – virtually to the cent on Brent, Heat and Gasoil – and then rallying off them. RBOB was much closer to the 5 day from the start after a lacklustre Wednesday, but after a brief breach took off north and caused consternation and stop-lossing amongst the ursine community. The rest is history. The contracts have targets higher to 61.23 WTI (200 month MA); 68.62 Brent (34 week MA); 203.14 Heat (8 month MA); 206.18 RBOB (c/p) and 618.00 Gasoil (34 week MA). Run length to these objectives. I have been bullish with a three to six month time horizon for some time now and this is largely based off the analysis of long term charts. I remain bullish and the targets we have at the moment are modest compared to where I think we are going. Stick with the trend and do not be short. WTI closed over the key resistance, at 58.87 and held the 5 day MA, today around 58.41, and now has a target higher to 61.23 (200 month MA). Run length to here. A move confirmed by a close over 61.23 green lights the next leg higher to 62.96.

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Posted by Robin Bieber