Technical & Fundamental Oil Reports Specialists

Follow us

Watch the 5 and 8 day MAs. They are the key.

Published Wednesday, September 9th, 2015

Introduction. It makes sense to quote two sentences from yesterday’s report: “These 13s are the key to the next leg – moves confirmed by closes (m/c) below would open the way for a move back down to the recent lows. Holding them would point to a recovery back to the 5 and 8s.” As it turns out the 13-day M/As held yesterday and the recovery to the 5 and 8-day M/As duly took place.  These resistances have not been closed over therefore it would be pre-mature to turn bullish just yet. The picture could be very different by the close tonight. Settlements over the 5 and 8-day M/As are considered positive and would green-light targets above the current price action. Until then the market could actually be called neutral whereby the floor is the 13-day M/A supports and the ceiling are the 5 and 8-day M/As. On WTI these figures are 43.84 (the 13-day M/A) and 46.20 (5-day) and 46.36 (8-day). Should the former be closed below we are likely to be heading towards 42.17, which is the 61.8% retracement level of the recent rally. A close above the latter, on the other hand, could push the price up to 48.42 and 49.33, the recent highs and range resistances on the October contract.

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.