Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8 day MAs

Published Wednesday, August 19th, 2015

Introduction. The contracts are trying to hold. It’s time to be extra careful again and adopt a more neutral approach. The reasons for this are, firstly, key support has held on Brent at 48.24 (low of 48.25 yesterday), and Gasoil at 466.50 (low of 467.00 yesterday). Secondly, Sep’ WTI has moved back over 42.03 and Oct – the contract now being looked at – briefly dipped below but closed well above. This leaves just RBOB looking poor and whilst weak it is unlikely to go it alone. Thirdly, the stochastics are mixed with only WTI positive, but showing potential muted bullish divergence, and the rest just negative. The contracts are all below the s/t MAs but these look likely to be tested today. Moves confirmed by closes over the 5 and 8s would change the outlook to neutral/positive rather than the current negative/neutral. Watch the 5 and 8s today – the 5s will definitely be under pressure, and it’s only a question of whether the 8s are tested too. It’s very possible. The overall picture lacks harmony and when this occurs it’s best to reduce exposure and be patient.

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Posted by Robin Bieber