Technical & Fundamental Oil Reports Specialists

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Watch RBOB for guidance

Published Tuesday, May 26th, 2015

The market needs to shake out after the European long weekend.  The picture is not crystal clear but on balance favours more upside. Watch RBOB – it is above all the short term (s/t) MAs – has not closed below any of them since the break higher last Wednesday. It alone has an objective higher to 210.13 – the 200 day MA. If RBOB is giving another of its early warning signals then the market has more upside. The crudes have both been supported by the 34 day MAs – the highest  being on WTI at 59.20 and Brent 65.13 – and are right at the 5 and 8 day MA combo’.  The trend is up but faltered a bit towards the end of last week. RBOB remained steady throughout and it’s advised to let things develop today but to stick with the trend.  WTI has held the 34 day MA, at 59.55, on the dip and is above the 5 and 8 day MA combo around 59.81/68. It is seeking upside whilst over the 5 and 8s and has no target lower whilst above the 34. The key today is what happens at the 13 day MA around 60.20. A move confirmed by a close (m/c) over here would make a further move higher to 62.75 very likely. Watch the 5 and 8s and don’t turn bearish whilst above the 34

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Posted by Robin Bieber