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Support holding. Watch RBOB at 203.48/51 – it’ll give the clue

Published Friday, July 3rd, 2015

The key supports are holding and RBOB is strong. Whilst this is the case the downside is limited. The critical supports are at 56.42 WTI; 61.62 Brent; 184.10 Heat (the action is just below here at the moment); 201.92 RBOB; and 562.00 Gasoil. There is no downside potential whilst the action is above these. Although RBOB is strong and likely to go higher the rest need to kick in too because RBOB can’t take the whole complex up alone. It can, however, stop it from dumping, but the rest need to perform too. Only RBOB has a positive stochastic and is above the short term (s/t) MAs – the rest are not. Keep watching RBOB for guidance. If this is yet another of its prescient early warning signals the market is likely to hold and firm. WTI has held the key 50% c/p at 56.42. There are no targets lower whilst above here. A move confirmed by a close (m/c) below would green light a leg lower to 54.60. Resistance is stacked up at the s/t MAs starting at the 5 and 100 day around 57.65 then the 8 around 58.45, with the 13 around 59.24.

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Posted by Robin Bieber