Technical & Fundamental Oil Reports Specialists

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Watch the 5 day MAs and keep an eye on RBOB

Published Monday, July 13th, 2015

The contracts are struggling and look vulnerable. The picture is a little confused. RBOB closed, on Friday evening, above all the short term (s/t) MAs, including the 34, and the rest of the contracts were stuck between the 5 and 8s, having failed at the 8 – potent resistance. Friday evening would have been a technical “sit on one’s hands and wait” scenario with RBOB potentially pointing the away higher. This morning it’s all change with every contract bar Gasoil below all the s/t MAs and only Gasoil holding just over the 5. Moves confirmed by closes (m/c) below the 5s today would green light the next leg lower to 50.58 WTI; 55.10 Brent; 168.63 then 167.21 Heat; 196.83 (200 day MA) RBOB ; and 515.75 Gasoil. The 5s are on WTI around 52.31; Brent 57.75; Heat 172.30; RBOB 199.58 (8 day with the 5 around 200.03); and Gasoil 540.50. The 5s are very important today – watch them. WTI failed to make much headway, along with the majority of the other contracts at the 8 day and slid to close between the 5 and 8s. It has started lower today below the 5 and a m/c below this MA would green light a leg south to the recent lows at 50.58. A m/c below here would be bearish and activate the next leg lower to 48.71. Watch the 5 day round 52.31 very carefully today.

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Posted by Robin Bieber