Technical & Fundamental Oil Reports Specialists

Follow us

Watch the 34-day M/A on RBOB

Published Tuesday, September 22nd, 2015

Introduction. Friday’s weakness was followed by a rally yesterday but the energy complex, perhaps with the exception of RBOB, is getting softer once again this morning. In other words, the technical picture has not changed much over the last 24 hours. The market is still undecided and under these circumstances the daily short-term M/As, which are usually reliable indicators, are losing relevance. It is still not recommended to commit oneself in either direction other than on an intra-day basis.

WTI: the recent lows at 44.09 and 43.99 still need to be watched closely on the downside as a close below them will push the price of this contract down to the 61.8% c/p support at 42.91 and below the latter down to the August low at 38.51. Since the daily short-term M/As were closed above there is a chance of the test of the recent high at 48.07, a close over which could mean the test of the end of August high and range resistance at 50.04.

Brent: we need to see a conclusive close over assorted M/A resistances that are between 48.47 and 49.11. In that case this contract should jump to the 50.51 correction point resistance and on a close over it to the 53.26 range resistance, the daily high on September 3. Important supports are still the 47.66 correction point and recent lows at 47.16/01. A close below them is a sell as on such a move a drop to the 43.03 range support level will be expected.

to read the rest of the report, please click here

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.