Technical & Fundamental Oil Reports Specialists

Follow us

Watch the 5 day MAs. Ebb and flow in progress.

Published Monday, October 12th, 2015

Introduction.  Friday’s action was not very inspiring but was good enough to keep the upside intact. For the bulls the worrying aspect was the inability to make much progress when at resistance. This resulted in dips back and mediocre closes, which were still above all the 5 day MAs. It’s worth noting that the 5 day gap has narrowed from the high $2.50s – mid-last week – to around 59c today. The 5 day gap theory works and can be enormously beneficial in keeping one wary when the market has got ahead of itself. In the meantime, the contracts are all above the 5 day MAs – in some cases like Heat and Gasoil only just – and whilst they remain this way the upside potential is maintained. The contracts have not got targets higher yet – better closes (see later) are needed. Moves confirmed by closes (m/c) below the 5 day MAs would suggest more of a dip – watch the 5 day MAs. WTI closed below the pivotal 50.04 level and whilst below here has upside on hold. A m/c over 50.28 (100 day MA) would make a move higher to the further long term MA resistances starting around 50.94 (200 day) and 51.19 (100 day) then 51.77 (50% c/p) very likely. However there’s more work to do around 50.04 to 50.28 yet, and then any progress around here must be maintained by the close – unlike Friday. The 5 day MA support is around 49.08, and must be held over or this contract slips to the 8 day around 47.74. Watch the 5 day on this and every contract – it’s important.

to read the rest of the report, please click here

Posted by Robin Bieber