Technical & Fundamental Oil Reports Specialists

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Stay flat and watch the MAs

Published Monday, September 7th, 2015

Introduction. The contracts are stuck, giving back some of the ground from last week, and rather directionless. It’s as if it all happened rather too quickly and everyone was surprised to see the high numbers from the beginning of last week but there has been no real commitment to sell it. Technically it’s in “no-man’s land” – virtually all contracts are over the 13 (and 34 day) MAs, which is constructive, but below the 5 and 8s, which is no great surprise given the loss of momentum. Whilst over the 13s and 34s the market maintains upside potential, but needs to do more work. A move confirmed by a close (m/c) over the 5 and 8s would help the momentum higher. In the meantime it’s advised to sit on one’s hands and wait for the next leg to become clear. This is unlikely to happen today with the US holiday. WTI is stuck between the MAs – it is above the two 34 day MAs at 44.92 and 44.60. It is also above the 13 day around 43.47. A move below the 34s is likely to cause a test of the 13, but there are no targets lower whilst above the 13, around 43.47. Watch the 34s today – they are important. Resistance is at the 8 day around 45.89 and then the 5 day around 46.03. A m/c back over the 8 would line this contract up for a re-test of the continuation c/p at 47.24.

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Posted by Robin Bieber