Technical & Fundamental Oil Reports Specialists

Follow us

Looking encouraging whilst above the M/As

Published Wednesday, June 3rd, 2015

The uptrend is trying to re-assert itself. After Friday’s rally the energy complex retreated somewhat on Monday but a rally yesterday gave us a demonstration that bulls, if anyone, are in control of the market. One thing is sure: it is firmly not recommended to be short at the moment. The reason to say this is that all the daily short-term M/As, with the exception of the 13-day on Heating Oil, and in some cases the 34-day M/As are below the price action and are acting as supports. Only on closes below these areas will bears grow in confidence. These are 60.09/59.44 on WTI with the 34-day at 59.73, 64.78/64.37 on Brent, 192.70/190.89 on Heating Oil, 203.78/201.81 on RBOB with the 34-day at 200.18 and 593.50/589.00 on Gasoil. So, does it make sense to go long after the decent rally since last Thursday? Possibly, but it might not be unreasonable to be a bit more patient with buying. After all, hefty resistances were tested but failed to close above yesterday.

to read the rest of the report, please click here

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.