Technical & Fundamental Oil Reports Specialists

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Upside potential developing whilst over the 34s

Published Thursday, September 3rd, 2015

Introduction. The market is settling down a bit, but still very volatile and violent. The support held yesterday, having been put under serious pressure at one time or another during the day. The crudes and RBOB held the 8 day MAs, virtually to the cent, on the dip and recovered. All contracts, bar Brent and Gasoil, closed over all the s/t MAs, and in most cases the 34 day MAs are now key pivotal support. This is constructive. The logic of yesterday’s move, after support held and the s/t MAs were closed over, is that the market should make a slingshot (s/s) move higher to the formidable c/ps at 48.06 WTI; 53.48 Brent; 165.88 Heat; 148.38 RBOB; and 502.00 Gasoil. This view is held whilst the contracts remain above the higher of the two 34 day MAs. Meanwhile the longer term perspective, via the medium of the weekly and monthly charts, is rosier – all the weekly stochastics, bar RBOB (massive continuation change from Sep to Oct contract), have flipped positive from a very low point. This wider time horizon is suggesting that the contracts are more likely to move gently higher than re-visit the lows.  Use the 34s as a key pivot today.

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Posted by Robin Bieber