Technical & Fundamental Oil Reports Specialists

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Short-term direction to be decided by short-term MAs

Published Wednesday, September 30th, 2015

Introduction: as it turns out it paid off to be patient yesterday and to have not gotten carried away by the pressure we saw on important support levels in the morning. These supports proved to be tough nuts to crack and after they were tested and held bulls launched a counter-offensive pushing prices higher. This battle has been won by them but looking at the daily charts a fight-back from bears could easily happen today. The simple reasons to say this are that a.) the daily short-term M/As were not conclusively settled above although if they are tonight the test of the top ends of the trading ranges will be expected and b.) the daily slow stochastics are negative on all contracts.

WTI: these daily short-term M/As are currently between 45.03 and 45.55. Whilst they are above the price action the 43.99/89 range support should be put under further pressure and an eventual close below the latter is very bearish. In case the M/A resistances are settled above a jump up to the 48.07 range resistance is anticipated, a close above which is deemed bullish.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.