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Further pressure on resistances

Published Wednesday, June 10th, 2015

After failing at the daily short-term M/A resistances on Monday the energy complex made amends yesterday and shot higher. Whatever the fundamental reasons were behind the buying spree it certainly turned the technical picture positive and indicates higher numbers to come. How much higher remains to be seen as there are hefty resistances just above the current price action but whilst the contracts are above the daily M/As and the daily slow stochastics are positive it would be madness to try and talk bearish. Those who are long should try and run their positions up to the next resistance areas where profit-taking on part of the length is recommended. These are the 61.43/58 range resistance on WTI, the 65.80/88 range resistance on Brent, the 34-day M/As at 194.24/66 on Heating Oil, the 213.05/47 range resistance on RBOB and the 34-day M/A at 595.75 on July Gasoil which will become the front month tomorrow. If these levels were closed above then it would only make sense to keep the other half of any long positions as further rallies will be expected in the coming days

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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.