Technical & Fundamental Oil Reports Specialists

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RBOB steady, rest vulnerable

Published Monday, November 30th, 2015

Introduction. There are two sides to the market at the moment – Jan’ RBOB and then the rest. It is only RBOB’s action that is preventing targets lower, and it is the only contract above all the s/t MAs. It also has a positive stochastic. The key to the next leg is Jan’ RBOB at the 5 day MA support around 133.37. It is the most important support level on the board – watch it. A move confirmed by a close (m/c) below here would point to a loss of momentum on a key contract and green light targets lower on the rest. These targets would be to 40.41 WTI; 43.15 Brent; 137.45 Jan’ Heat; and 413.75 Gasoil.  However be very careful – Heat and Gasoil are approaching lows only seen once since May 2009 – these are areas to be very wary around, as any rally would likely be fierce. It is also never a good idea to read too much into markets affected by long weekends – wait for the action to bed in another 24 hours.

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Posted by Robin Bieber