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

Published Thursday, August 6th, 2015

The trend remains down. Rallies to the 5 and 8 day MAs are sales. There are targets lower to 43.58 WTI; 48.90 then 47.78/57 Brent; 148.71 Heat; 163.44 RBOB; and 453.75 Gasoil. Shorts should be run to these levels. These objectives are valid whilst the contracts remain below their 5 day MAs. Yesterday’s brief correction higher ran out of steam at the 5 day MAs, where almost every contract failed. This is text book downtrend action. One has always got to be careful when the price action strays too far from the 5 day MA – in this case below. On Monday the 5 day gap (the size of the difference between the current price action and the 5 day MA) was over $1.50. This is normally too much and the price action corrects higher to move closer to the 5 day MA. The culmination of this brief contra-trending action was yesterday when all the contracts failed at the 5, and the market fell. Stick with the trend. WTI has an objective to 43.58 valid whilst it is below the 5 day MA around 45.77, a sale. The 8 day is around 46.71, also a sale.

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Posted by Robin Bieber