Technical & Fundamental Oil Reports Specialists

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Recovery in progress. Watch the 5 and 8 day MAs.

Published Friday, October 23rd, 2015

Introduction. The message yesterday was to watch RBOB, and specifically to be aware that it may well be giving one of its early warning signals. It’s early days yet, but the odds are that the market has more to recover and it will do so with RBOB leading the move. Before one becomes too excited it’s worth keeping things in perspective – all contracts have held support and rallied but the crudes only put on around 20c each last night. It was the products where the move higher was felt, and there’s more work to do yet. The crudes are still just below the key 5 day MAs around 45.73 (WTI) and 48.32 (Brent). This recovery needs these two above the 5s in order for this up-move to have any street cred’. However this morning Heat, RBOB, and Gasoil are above both the 5 and 8 day MAs, which points to a “slingshot” move higher to the 13s – i.e. more upside yet. For this to be valid the products must remain over the 8 day MAs – watch these carefully today.

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Posted by Robin Bieber