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Bullish WTI and RBOB whilst the rest are negative

Published Thursday, June 4th, 2015

If you looked at the price action around the daily short-term M/As and based your trading decisions on them after yesterday’s performance you would have a balanced portfolio. It was said in yesterday’s report that the market looked encouraging whilst above these supports and it was even suggested to go long on intra-day dips down there. It was, however, emphasized that selling short would be the way forward on closes below them. An early morning weakness was followed by a mid-day recovery only for the EIA to put the bears back in the driving seat. All contracts lost value but WTI and RBOB did not close below all of their M/A supports after testing them. It is, therefore, not unreasonable to be long in these two contracts. An obvious level for stop-loss on WTI is the lowest of these supports, the 8-day M/A currently at 59.27. As a matter of fact a close below this area seems to be a sell as on such a move the test of the 57.93 range support will be expected. Longs are advised to take profit on a rally up to the highs of the last two days at 61.43/61.58.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.