Technical & Fundamental Oil Reports Specialists

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Extreme care needed. Watch the s/t MAs for guidance.

Published Wednesday, September 2nd, 2015

Introduction. Yesterday’s move lower was probably the “mother of all bull-traps”. The day started with a dip lower being virtually inevitable, as the market was testing, but making little headway, against the key 38.2% c/ps of the most recent move lower. However, this dip tuned into a dump that then became total price carnage as the bull/bear (b/b) pivots failed and then some of the critically important 34 day MAs were closed below. The 5 day gap started the day over $3.00 wide – another reason that a dip back was likely early yesterday – and narrowed to virtually nothing by the close. The closes last night were poor but have not green lighted any targets south and the contracts are now, for the most part, below the 5 and 34 day MAs but above the key 8 and 13s. The next leg will be entirely dominated by the 5/34 resistance and 8/13 support. A final point of interest was that RBOB, last night, was the only contract to close above all the s/t MAs – it would not take a  lot to have it back over them all again.  It’s advised to sit on one’s hands and wait for the action around the s/t  MAs to give the signal.

to read the rest of the report, please click here

Posted by Robin Bieber