Technical & Fundamental Oil Reports Specialists

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Breakdown potential. Watch the pivots.

Published Tuesday, September 15th, 2015

Introduction. The market is very nervous – the spectre of Goldman’s $20.00 oil, regardless of the small print, is unsettling. The other fly in the ointment is WTI’s relative strength versus the rest. It’s best to treat WTI separately at the moment as it is de-linked technically. Nov’ Brent, Heat and RBOB all closed poorly last night. They have targets lower to 45.19; 145.07 and 122.79 respectively, providing the following levels are not moved and closed (m/c) back over – Nov’ Brent 47.66; Heat 151.06 and RBOB 133.31. Gasoil would acquire a target to 453.75 on a m/c below 461.25. WTI has no objective lower whilst above 43.54. It is in a different space technically from the rest and should be treated separately. It has, recently and particularly last week, not been a great plan to become bearish on weakness and poor closes. In every case the market has turned and bitten one – this is true of rallies into strength too. The extremes have been perilous.  However this is the first time that the contracts have m/cd below key supports so there’s a good chance that this weakness will follow through. The three key levels that need to be remained below are clear – Nov’ Brent 47.66; Heat 151.06; and RBOB 133.31 – whilst below here there are targets lower. Take protection on m/cs back over.

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Posted by Robin Bieber