Technical & Fundamental Oil Reports Specialists

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Upside intact whilst over the s/t MAs. Watch RBOB.

Published Thursday, May 14th, 2015

The contracts pretty much held on to Tuesday’s gains, which was important, and are above all the short term (s/t) MAs. This is constructive. The slight concern is that the stochastics remain negative on all contracts bar RBOB. Better closes last night would have had them positive and they are all wavering to the upside. They need to be move positive to be harmonious with the constructive outlook and this would occur on good closes today. Watch RBOB – it is important. Yesterday it headed straight for the key c/p resistance at 206.18, beached it a bit, and then failed to hold it causing a general sell-off. The view is that we are still heading back to the recent highs – held whilst the contracts remain over the s/t MAs – but RBOB needs to now move and close (m/c) over 206.18. This is the most important resistance on the board. It would help if WTI also m/cd over the 34 week MA at 61.03. So long as the s/t MAs hold the market is in good shape and should head higher. WTI is above the s/t MAs starting around 60.04 (5 and 8 day) then 59.53 (13 day). It has m/cd below the 34 week MA at 61.03 and a m/c over here would make a run up to the recent highs at 62.58 very likely.

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Posted by Robin Bieber