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Still bound by ranges

Published Monday, September 28th, 2015

Introduction: it did not become any clearer on Friday as to which direction the next leg of the energy complex would be. With the exception of Heating Oil all the contracts closed higher but, and we are not going to be surprised, some selling pressure is pushing the prices lower at the time of writing. Friday’s general strength did not take the contracts anywhere near crucial resistances and this morning’s price weakness is nowhere near significant enough to have important supports tested. The contracts are around the daily short-term M/As this morning with no indication of whether the upper or the lower end of the ranges are more likely to be tested and the daily slow stochastics are also mixed.

WTI: the immediate range remains the same and is 43.89/99 and 48.07, recent daily lows/high. Friday’s close was between the 8 and 13-week M/As. This means that not only the daily but also the weekly technical indicators are neutral at best .

Brent: the daily range is 47.16/01 on the downside (daily lows and ranges) and 50.25/34 (range resistance) and 50.51 (correction point resistance) on the upside. The 5-week M/A was closed below on Friday but the 8-week was not. Both of them, however, are just above the current price action so maybe supports rather than resistances will be under renewed pressure.

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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.