Technical & Fundamental Oil Reports Specialists

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Erratic action and lack of harmony. Be careful.

Published Wednesday, August 26th, 2015

Introduction. The trend remains down. Despite a concerted effort to recover only WTI moved and closed over the bull/bear (b/b) pivot at 39.11. It was also the only contract to near but not hit its 5 day MA. The rest all moved above but then closed (m/c) below the b/b pivots. However there is a lack of harmony and it’s advised to let things develop a bit before committing too much here. The lack of harmony – an important technical ingredient in any trend – is manifested by WTI being above yesterday’s b/b pivot, at 39.11, being in 5 day MA testing mode and having a positive stochastic, with bullish divergence developing. Brent being over the important 42.23 level, thereby negating a target lower for the moment. Products on further weakness would have targets lower if Heat m/cs below 138.45; RBOB another m/c below 144.70; and Gasoil below 420.75. The trend remains down – the only question is whether there is more recovery before further downside develops. WTI is moving differently from the rest. It m/cd over the b/b pivot at 39.11 and has no target lower at the moment.

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Posted by Robin Bieber