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The trend is down but we could see an upside retracement today

Published Thursday, July 16th, 2015

Longs, if there are any left, are in trouble. The contracts lost further value yesterday. Downside targets were hit and in some cases even closed below. Those who were short in WTI, Heating Oil and Gasoil should be flat now and wait for developments. On the other hand, yesterday’s performance indicated that there is nothing wrong with being short in Brent and RBOB. The former three contracts all hit their respective objectives lower. These are the 50.58/38 range support area in WTI with a low at 50.63. On Heating Oil it is the 168.58/63 level which was broken below and this contract headed straight towards its next support, the daily low on the August contract on July 7 at 167.21. It was settled a few points below but the price is back above it so it probably makes sense to be flat. On Gasoil we had an objective at 515.75 and this contract bottomed out at 516.50, hopefully close enough for shorts to put some money in the bank. Needless to say that if these supports are broken and settled below tonight further weakness can 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.