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Lower. Watch RBOB at 128.86 as a pivot.

Published Friday, November 13th, 2015

Introduction. The contracts are in trouble and are locked into a down trend. It is not advised to be long. Targets lower were hit on virtually all contracts yesterday and the price action has green lighted further objectives below the market. These are on WTI to 39.22, valid whilst below 42.58; Jan’ Brent to 44.62 valid whilst below 45.98; Heat to 137.45, valid whilst below 140.79; RBOB to 126.20, valid whilst below 128.86; and Gasoil to 429.50, valid whilst below 434.00. Shorts should be run to these target levels. The key pivot to watch for guidance today is RBOB at 128.86 – a move confirmed by a close (m/c) over here would point to a correction higher. The price action is a little too far south of the 5 day MAs for comfort, so don’t be surprised by an early corrective rally to narrow this “5 day gap”. Rallies to the 5 day MAs have been, and still are, good selling opportunities. WTI m/cd below 42.58 and as a result green lighted a target lower to 39.22. This is valid whilst it is below 42.58. There is not a lot of support between current levels and 39.22. Resistance is initially at 42.03 and then 42.58, followed by the 5 day around 42.86, a sale. The 5 day gap at the moment is around $1.30. This is too wide so expect a sellable rally that tries to narrow the gap. Shorts are safe whilst below 42.58.

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Posted by Robin Bieber