Technical & Fundamental Oil Reports Specialists

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Watch the 13 day MAs. They are the key.

Published Tuesday, September 8th, 2015

Introduction. The market had a less than impressive day yesterday, but one should be careful about reading too much into a move that occurs over a holiday. That is not to say one disregards the action but treat it with caution. The market’s technical condition is quite simple – it has, over the last two to three weeks, rallied in the face of a relentless move down. This recovery took about half the time of the recent move higher and the rest of the action, for the second half of this period, was spent gently sliding back and giving up ground achieved. The corrective rally was very pure technically – up to the first c/p of the overall move down (eg – Oct’ Brent move from 71.68 down to 42.23, 38.2% c/p at 53.48 – recovery high of 54.32 on 31/8 and next day high of 53.47) then it has headed lower since. It doesn’t come much more techno-logical than that. On the correction back lower all the contracts have slid below the 5 and 8 day MAs making a test of the 13s very likely.

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Posted by Robin Bieber