Technical & Fundamental Oil Reports Specialists

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Support holding. Watch RBOB and the action generally at the 5 day MAs.

Published Friday, May 29th, 2015

After a pretty violent day the contracts have held support and recovered a bit. By the closes last night they were still below all the short term MAs and the stochastics were still negative. The recovery back over support yesterday has narrowed the 5 day gap – the difference between the price action and the 5 day MA. It is at more normal levels now. The 5 day gap theory in essence means that something’s got to give if the gap widens too much and that the price and the 5 day must converge again. This has happened. The key supports have held and are preventing targets lower at the moment. These supports are at 57.93 WTI; 62.51 Brent; 186.50 July Heat; 197.10 July RBOB; and 566.75 Gasoil. These need to hold or targets lower will be green lighted. Watch RBOB carefully today and specifically around its 5 day MA around 198.20. WTI has no target lower whilst it holds the 34 day and 8 month combo at 58.07/57.93.

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Posted by Robin Bieber