Technical & Fundamental Oil Reports Specialists

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Higher. Watch RBOB and stick with the trend.

Published Wednesday, May 6th, 2015

The trend is up – stick with it. I had expected slightly more of an initial dip yesterday, but the move by RBOB straight through its 200 day MA at 203.36 gave the signal for an immediate resumption of bullish hostilities and the whole market took off higher. Targets above the market were hit yesterday at 61.24 WTI (hit overnight); 67.71 Brent; 203.75 Heat; 206.05 RBOB; and 611.00 Gasoil. Only RBOB and Gasoil closed over these levels giving those contracts further objectives above to 215.37 RBOB and 623.75 Gasoil. These targets are only valid once the rest move and close (m/c) above their erstwhile targets – which seems likely. The longer term view, initially expressed about three weeks ago, remains positive and I expect much higher numbers to develop over the next month or two. It’s advised to stick with the trend and run length to targets where valid. WTI has hit its target to 61.24 and now needs a m/c over to green light the next one higher to 62.03 then 64.24. The longer term target is to 69.84, but one needs to take it step by step. Upside is maintained by closing over 61.24 today. Support is at the 5 day around 59.89 and the 8 day around 59.01. This contract is fine whilst above here. Watch the 61.24 level carefully today.

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Posted by Robin Bieber