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Vulnerable – watch RBOB’s 8 day MA and the supports

Published Friday, November 6th, 2015

Introduction. The contracts are all under pressure. RBOB failed to hold above the 5 and 8 day MAs last night and the rest were vulnerable and weak all day. However, the short term (s/t) MA picture is not harmonious. WTI, Brent, and Heat closed below all the s/t MAs, whereas RBOB and Gasoil were below the 5 and 8s but holding the 13s. Heat has now moved back over the 13, around 149.33. We are back where we were three or four days ago, and looking fragile. There are no targets south yet, because last ditch support is holding. These key supports are on WTI at 45.32 (50% c/p); Brent 47.60 (range); Heat 149.33 (13 day MA); RBOB 137.48 (8 day MA); and Gasoil 449.25 (13 day MA). RBOB’s 8 day MA around 137.48 is the most important support on the board. If it fails to hold this both it and the rest will head south, and in RBOB’s case the move lower would likely be down to 135.45, the 34 day MA. Watch 137.48 carefully today.

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Posted by Robin Bieber