Technical & Fundamental Oil Reports Specialists

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Above the s/t MAs. Use them for guidance.

Published Thursday, October 8th, 2015

Introduction. Targets higher were hit yesterday on Brent, Heat, and RBOB to 52.70, 163.53 and 144.90 respectively. The high on Heat was actually 163.44 and on RBOB was 144.88, but a point or two is deemed good enough. The 144.90 level was highlighted yesterday as the most important resistance on the board and the odds were that it would prove a useful guide. When RBOB hits its target it’s always worth being careful. The other cautionary note was the concern caused by the 5 day gap. WTI and Brent started the day around $2.50 higher than the 5 day MA – this was too large, and normally the market will react back to narrow this gap. It is around $1.00 on Brent and 68c on WTI this morning.  The 5 day gap theory can be very useful in volatile market conditions and proved its cautionary value yesterday. By the closes last night the contracts were still above all the short term (s/t) MAs and had positive stochastics. The contracts are in bull-mode whilst they remain over the s/t MAs. However they have more work to do to reinstate targets higher and RBOB must move and close (m/c) over 144.90 before a breakout is confirmed.

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Posted by Robin Bieber