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Targets lower. Downtrend action. Sell rallies to the 5 and 8s.

Published Friday, August 21st, 2015

Introduction. The market is stuck in a relentless downtrend.  Bottom picking is a fruitless and unprofitable task. Targets lower were hit yesterday on Heat to 148.71 and Gasoil to 453.75. Both levels were closed above so further objectives south are on hold for these two contracts. In the meantime the rest have targets lower to 39.99 WTI; 45.19 Brent and 150.81 RBOB. Shorts should be run to these levels.  The 5 and 8 day MAs represent good trend following resistance and are sales on corrections higher. The key technical indicators (KTIs) are negative and support further moves lower. Stick with the trend. WTI has an objective to 39.99 – run shorts to here. There is some further support at 39.44 and it would need a move confirmed by a close (m/c) below here to green light a further dump lower to 36.94. The resistance starts at the bull/bear (b/b) pivot at 41.16 and a move over here would point to a test of the 5 day MA around 41.81 and potentially the 8 day round 42.40 – both are sales. Brent has an objective to 45.19 – run shorts to here. A move and close below 45.19 would green light the next target lower to 42.59.

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Posted by Robin Bieber