Technical & Fundamental Oil Reports Specialists

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Watch RBOB and the s/t MAs

Published Wednesday, June 17th, 2015

The contracts remain in a state of technical disharmony and as a result it’s advised to keep exposure limited. The lack of harmony is manifested, for example, by the short term (s/t) MAs. RBOB is above them all; WTI above the 8 and 13 and at the 5; the rest below. The stochastics are another case in point – WTI and RBOB are positive the rest negative, and last night’s closes do not clarify matters – RBOB puts on 254 points whilst Brent loses 25. IF RBOB is giving yet another of its reliable early warning signals the contracts should push higher and go into resistance testing mode. The key will be the action on RBOB at 215.61 – the 13 month MA – and the most important pivotal resistance on the board. A move confirmed by a close (m/c) over here would be bullish for both RBOB and the rest. Watch this level carefully today. WTI is right at its s/t MAs. The 8, 13 and 34 are support around 59.99/86 and the 5 is resistance around 60.05. A m/c over 60.05 would point to higher numbers and further tests of resistance up to the 60.94 area, and a failure to hold 59.86 would suggest a test of the lower 34 day at 59.57. There are no targets lower whilst 59.57 holds.

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Posted by Robin Bieber