Technical & Fundamental Oil Reports Specialists

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Watch the 13 day MAs and RBOB. Be careful, trend not over yet.

Published Friday, May 8th, 2015

The vicious correction continued yesterday as the immediate danger of a “bear trap” receded. RBOB once again proved its value as the “Mystic Meg” of the oil complex – giving prescient early warning signals and solidifying its reputation as a “must watch” contract. It was the first, two days ago, to wobble, move below the 5 day MA, and send a shiver down the bulls’ spines. The market action over the last two days needs to be kept in perspective. All that the contracts have done is give up three days of price action – we are exactly where we were three days ago, and all but RBOB, and to a lesser extent Brent, are holding over the 13 day MAs. The fact that RBOB is below the 13 day around 201.09 is worrying, but not totally conclusive. The key today is the action at the 13s and they are around 58.49 WTI; 65.69 Brent; 195.57 Heat; and 597.00 Gasoil. Watch these very carefully – moves confirmed by closes (m/c) below would be bearish, but at the moment they are the logical points for the market to have corrected to.

to read the rest of the report, please click here

Posted by Robin Bieber