Technical & Fundamental Oil Reports Specialists

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Promising but not conclusive. Watch the s/t MA supports.

Published Tuesday, October 6th, 2015

Introduction.  The contracts took their cue from the move over the short term MAs and headed, “slingshot” fashion, towards the top of the range and next resistances, which by then had become the intra-day targets higher. Yesterday’s action was a pretty perfect example of how the s/t MAs perform, when in a range, as either trapdoors to support, or, in this case, springboards to resistance. The move over the s/t MAs provided this springboard to resistance yesterday. The contracts are all above the s/t MAs and are testing the upper end of the range. However, they have not yet broken out, and patience is needed. There are no targets higher until the key resistances can be closed over. WTI moved over the s/t MAs and very nearly hit its intra-day (i/d) target to 47.10, with high at 46.94. The area from 47.10 to 47.24 is well resisted and will be a hurdle. Care is advised around here. A move confirmed by a close (m/c) over 47.24 would green light a leg up to 48.64, a c/p. In the meantime, further upside potential is maintained whilst over the 55 day and c/p support at 45.76/64 and the 5, 8 and 13 day MAs around 45.59/42. It is important that WTI stays above these two support areas.

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Posted by Robin Bieber