Technical & Fundamental Oil Reports Specialists

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Up-trend kicked back in. The contracts must stay over the s/t MAs.

Published Wednesday, May 13th, 2015

The longer term supports have held and the up-trend has kicked in again.  The contracts moved over their short term (s/t) MAs and then the bears were left scrambling for cover. Whilst the contracts remain above the s/t MAs the upside potential, to at least the recent highs, is intact. That should be the easy part – the more difficult phase begins at these recent highs, which if closed over would green light some punchy targets some way above the market. The trend is up whilst above the s/t MAs – take it step by step. WTI has closed over all the s/t MAs and is now above the important 34 week MA at 61.06. It did not close over here last night, however a move confirmed by a close (m/c) over 61.06 today would green light a target higher to 62.58 with a longer term objective to 65.90. Meanwhile just staying over the highest s/t MA around 60.00/59.90 (the 5 and 8 day MAs) maintains the upside potential, but we need the m/c over 61.06 to activate the objective to 62.58, the recent high. July Brent is also above all the s/t MAs with the highest being the 8 day round 67.14. This needs to be remained over to keep the upside momentum intact. The 34 week MA is at 66.76 and this contract is in good shape whilst over here and should look for a move higher to 70.36 initially then longer term to 72.12.

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Posted by Robin Bieber