Technical & Fundamental Oil Reports Specialists

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Downtrend conditions

Published Wednesday, August 5th, 2015

The trend remains down and any recovery is fragile. Yesterday we witnessed a mild correction higher, but there are still targets lower which are valid so long as the contracts remain below the 5 day MAs. These objectives are to 43.58 WTI; 48.90 Brent; 148.71 Heat; and 453.75 Gasoil. RBOB needs a move confirmed by a close (m/c) below 167.78 to green light a move lower to 163.44. Yesterday’s move higher was not altogether unexpected – the price action had become too far below the trend hugging 5 day MA. When this gap exceeds $1.50 there are usually attempts made to narrow – hence the correction. It is around 79cts now. The short term (s/t) MAs are lined up in sequence above the market as in depth resistance and are sells on rallies. The stochastics have flipped positive on all but Gasoil. This may be a warning of change in direction but placing too much emphasis on this is premature especially when the price action is still below the 5 day MAs.

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Posted by Robin Bieber