Technical & Fundamental Oil Reports Specialists

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The contracts are holding. Watch the key supports and 5 day MA resistances.

Published Wednesday, October 21st, 2015

Introduction. The contracts remain vulnerable, but support has held. There are no targets lower until the support is moved and closed (m/c) below. This support is at 46.08/05 WTI; 48.47 Brent; 144.92/81 Heat; and 127.26 RBOB. Gasoil is below the key level at 453.75, but it can’t maintain a valid target lower on its own. These key supports are critical and however poor the contracts may appear there are no objectives south until these supports are closed below – in short the market is holding. If it is to recover it has a lot of work to do. It’s early days yet but in order to be showing some recovery potential it would need to move back over the 5 day MAs. These are around 46.63 WTI; 49.22 Brent; 146.51 Heat; 128.80 RBOB; and 447.75 Gasoil. Watch these carefully on any recovery today – they have a habit of booting rallies off the stage so be careful when neared. WTI is holding support at 46.08/05 (the 34 and 55 day MAs) and it would need a m/c below here to green light a leg down to initially the 50% c/p at 45.32 and on a failure here to 43.88. Resistance is at the 5 day MA around 46.63 then the c/p at 46.76 followed by the 8 day around 46.89. A m/c back over the 5 would be constructive, but with a lot more work to do.

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Posted by Robin Bieber