Technical & Fundamental Oil Reports Specialists

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At key support. Be careful.

Published Monday, July 6th, 2015

The market is going to be in a very dangerous condition today and it’s advised to watch key support levels carefully. Friday night’s closes were poor on all contracts but less so RBOB, which settled on the 55 day MA support, closing only one point below. As a result of the poor closes generally the remainder of the contracts acquired targets south. These were on WTI to 54.87/60 (100 day MA and a c/p); Brent 59.42 (c/p); Heat 178.73 (c/p); RBOB 198.08 (200 day MA); and Gasoil 551.50 (c/p). These are all pretty much being hit at time of writing and are areas to cover shorts, go flat, and wait. The price action is a long way away from the 5 day MAs – this is normally an unsustainable gap. Moves confirmed by closes (m/c) below the targets would activate further objectives below the market but right now it’s time to take the money and run. The key technical indicators (KTIs) are negative – now watch that support. WTI m/cd below the key support at 56.42 on Friday night thereby acquiring target lower to 54.87/60 – the 100 day MA and c/p. This is a profit taking area, but a m/c below would green light the next leg lower to 52.31 (continuation 50% c/p of 42.03 up to 62.58). Resistance is at 56.20, the bull/bear (b/b) pivot and then 56.73. A m/c over the b/b would point to a bit more of correction higher to the 5 day.

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Posted by Robin Bieber