Technical & Fundamental Oil Reports Specialists

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Watch the s/t MAs. They hold all the clues.

Published Friday, September 18th, 2015

Introduction. The market once again failed at the 13 day MAs. Each contract is slightly different. WTI, alone, is above all the s/t MAs but failed , after breaching the combination of the 55 day MA, around 46.90 and the c/p at 47.24. The rest are dominated by the action at the 5 day MA supports and the 13 day MA resistances. The latter are keeping the rallies in check and the former are support on dips. There are no targets either way until either the 13 are moved and closed over (m/c) or the 5 are m/cd below. It’s not much more complex than that – keep one’s powder dry for the break out. Meanwhile the 5 day gap theory was a great help yesterday. Both WTI and Brent looked overcooked yesterday morning and the 5 day gap was too wide – $1.68 on WTI and $1.08 Brent – this has narrowed to 86c on WTI and 51c on Brent. The message yesterday morning was look for the dip back and the 5 day gap played a large role on this view.

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Posted by Robin Bieber