Technical & Fundamental Oil Reports Specialists

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Supports are under serious pressure

Published Tuesday, September 29th, 2015

Introduction: Supports were tested on every contract yesterday. As a matter of fact they were settled below on November Heating Oil which will become the front month tomorrow night after the close. They were put under serious pressure on the rest. So with the exception of the Heating Oil contract no sell signal was given but all we need is one more push to the downside and the lower end of the recent ranges will have been broken below. It might be an idea to start selling short if the supports are penetrated for a few hours and go fully short if closed below. Below we shall re-cap what these supports are we are also going to refresh our memory as where the market should be heading to in case of another weak performance today.

WTI: The crucial support area is the 43.99/89 level. These are the daily lows on the November contract on September 2 & 9. Should they be settled below the next target is the 61.8% correction point of the August move up at 42.91 and below that the August low of 38.51 will be the nearest strong support level.

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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.