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Sell rallies to the 5 and 8s. Stick with the trend.

Published Tuesday, August 18th, 2015

Introduction. The trend remains down and gathering strength again. The 5 day MAs halted the rally on most contracts, notably WTI and Brent, and assorted other MAs – combinations of the 5, 8 and 13 day – destroyed the fragile move up on the rest. Rallies to the 5 day MAs continue to be selling opportunities. In the meantime, negative closes on WTI (below 42.03); RBOB (below 167.22) and Gasoil (below the s/t MAs) have green lighted targets lower to 39.44 WTI; 162.30 RBOB; and 466.50 Gasoil. Brent and Heat have, as yet, not acquired objectives south. The downtrend may well look as if it’s bottoming from time to time but it is still relentless and rallies repeatedly fail. Stick with the trend. WTI closed below the key 42.03 low and now has an objective lower to 39.44. We may well run out of time on Sep’ WTI so it is important that Oct WTI also moves and closes (m/c) below 42.03 to give time for this target to be achieved. Meanwhile resistance starts at the 5 day MA around 42.33, a sell, and the 8 around 42.95, also a sell.  The 5 day has been a reliable sell on Sep’ and Oct’ since late June. Oct’s 5 day is around 42.95.

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Posted by Robin Bieber