Technical & Fundamental Oil Reports Specialists

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Watch the key supports carefully – downtrend gathering pace.

Published Thursday, May 28th, 2015

Supports failed yesterday and the market headed lower, moving below important levels. The contracts are in trouble and it would not now take much to push them over the edge and have a new set of targets lower. The technical picture is not good – the contracts are all below the s/t MAs, all but WTI are below the 34s, and the stochastics are negative. Do not be long. The key today is the action at critical supports coming in on WTI at 57.86 (34 day and 8 month MA); Brent 62.51 (50% c/p); July Heat 186.32 (55 day MA); July RBOB 194.01; and Gasoil 566.50 (55 day MA). These are very important levels. Moves confirmed by closes (m/c) below would green light further targets south. WTI has hit and held the key 57.86 level – the 34 day and 8 month MA. This is a crucial support, and represents the completion of a price cycle (by the move to the 34 day) and this area must hold or WTI acquires a target lower to 56.35 (55 day MA). There is no immediate upside unless this contract can m/c over the 5 and 8 day MA combo around 58.74/86 area.

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Posted by Robin Bieber