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Reluctant market is still in the range

Published Friday, October 2nd, 2015

Introduction: at times it looked as though that the bulls’ appetite was insatiable yesterday and they would keep buying until resistances and the top end of the ranges were in sight. It was not meant to be as a spectacular change of heart during the London afternoon reminded us that the energy complex is moving sideways as it has done so over the last month or so and has no intention to commit itself in either direction. It is, therefore, still only recommended to play the current ranges that are made up basically by the highs and lows of September.

WTI: only a close below the 43.99/89 range support area is a sell. Such a move will green-light 42.91, a correction point as the next downside target with the potential to fall to 38.51, the daily low in the middle of August. Only a close above the 48.07 range is a buy. Above that the contract should run up to 50.04, the daily high at the end of August. We shall go into next week feeling slightly bullish if the 13-week M/A at around 45.95 is settled over or bearish if the 8-week at around 44.32 is closed below.

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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.