Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 34s for upside. 8 and 13s must hold.

Published Friday, September 4th, 2015

Introduction. The price action yesterday was text-book – start the day below the 5 day MAs but with little down side momentum – dips continually held – moved sideways for most of the morning, then over the 5s and accelerate higher and head, slingshot (s/s) fashion, straight for the key c/ps, which four of the five contracts tested, then fail at these formidable resistances, and headed back to the 5s again. Sounds simple…it isn’t…and now it’s back to being all down to the 5 and 34 day MAs again. The next leg will be dominated by the action at these two MAs. If the 34s hold and the contracts take out the 5s then it’s off higher to the c/ps again. Conversely if the 5 and 34s fail then it’s a s/s move to the 8 and possibly the 13s – ergo watch the 5 and 34s for the clues. In the meantime, note the strength and importance of the c/p resistances above the market. These are all the 38.2% c/ps of the recent move down and they are at 47.24 and 48.06 WTI; 52.70 and 53.48 Brent; 163.53 and 165.88 Heat; 148.38 RBOB; and 500.00 and 502.00 Gasoil. The higher of the two is by far the more important and note how yesterday’s highs were virtually at the higher of these c/ps on all contracts bar Brent. They are a “must watch” danger level on a rally.

to read the rest of the report, please click here

Posted by Robin Bieber