Technical & Fundamental Oil Reports Specialists

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Watch the key supports. Market in trouble but don’t write it off yet.

Published Wednesday, May 27th, 2015

Yesterday’s price action was not good, and were it to be confirmed by further weakness today the contracts would be in very serious trouble. All contracts closed below their short term (s/t) MAs – this is negative. RBOB failed to hold above the key c/p at 206.18 and then also settled below the s/t MAs – this is also poor. Brent, Heat and Gasoil all closed below both the 34 day MAs, and WTI below the highest of the two. RBOB is still above the 34s. It’s very easy to make a bearish technical picture, but some care is advised. Firstly wait and see if yesterday’s bad day has any follow through and secondly watch RBOB at its 8 week MA at 198.70 and the 34 day MA at 198.21 – these are the two most important pivotal supports on the board today. Moves confirmed by closes (m/c) below would be negative and green light targets lower. WTI is below all the s/t MAs but is holding over the key continuation 34 day at 57.71. It has rallied over the 8 month MA at 57.98 and holding above here would be constructive. The key supports span the area 57.98 down to 57.71/64 (34 day and 8 week MAs). A m/c below 57.64 would be bearish and green light a leg lower to 56.28. This contract is deemed to be recovering on a m/c over 59.22 – there higher of the two 34s.

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Posted by Robin Bieber