Technical & Fundamental Oil Reports Specialists

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Watch the key supports on the crudes. Vulnerable.

Published Tuesday, October 20th, 2015

Introduction. The contracts are on the edge of a precipice.  The crudes are just holding but the products look ragged and vulnerable. They would have targets lower but these potential objectives need crude to fail at support to be valid. RBOB’s failure to hold the 130.39/00 level started the storm yesterday and the market dumped to close poorly. Dec’ WTI is at the continuation 34 day MA at 46.10 and above the 50% c/p at 45.32. A close below the latter would be negative. Brent is just over key support at 48.67, a c/p. Moves confirmed by closes (m/c) below these key supports would open the flood gates for a general move lower. This would green light targets lower to 141.20 Heat; 122.65 RBOB: and 427.50 Gasoil. The key technical indicators are negative and the contracts are in precarious condition.

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Posted by Robin Bieber