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Failed correction higher. Market is vulnerable. Watch RBOB.

Published Monday, November 23rd, 2015

Introduction. Friday’s correction failed to make much headway north and the contracts are now vulnerable. RBOB pretty much completed the “slingshot” move from the 5 and 8 day MAs to the 13 day MA and then the correction point at 130.90 and 130.52 respectively, breached these, and then neared the 34 day at 132.71 (high of 132.40). It then failed to close over the 5 and 8s but below the 13 day and c/p. This was not particularly positive but at least it held and still does, over the 5 and 8 day MAs. The rest however did not fare so well and all breached but failed to hold over the 8 day MAs. Brent only closed below the 8 by one cent. Friday’s failure will have given the bears fresh heart and we should see support under pressure today. The key is RBOB and how it performs at firstly the 5 day around 127.17 and then secondly the 8 around 126.36, and then should there be a recovery at the 13 day MA resistance at 130.01.

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Posted by Robin Bieber