Technical & Fundamental Oil Reports Specialists

Follow us

Watch RBOB at 124.84 – key pivot. Down trend conditions. Sell rallies.

Published Monday, November 16th, 2015

Introduction. The down trend continues without respite. Targets lower were hit on Friday on Brent, RBOB and Gasoil. There are currently valid targets lower on WTI to 39.22; Brent to 42.28, on a further close below 44.62; Heat to 137.45 (neared on Friday but not quite hit); RBOB to 117.56, on another close below 124.84; and Gasoil to 420.50, valid whilst below 429.50. The market is going to be volatile and erratic and the best guide is RBOB at 124.84. This is the most important support level on the board today. A further move confirmed by a close (m/c) below here would validate all the targets lower on the rest. Whilst RBOB is over 124.84 it’s best to adopt a wait and see approach and use this level as the trigger to get short again. The 5 day gap is slightly wide – around a $1 or so on Brent – so expect nasty sellable corrections. Rallies to the 5 day MAs continue to be sales. Only WTI and Heat made it up to the 5s on Friday, but these MAs have been reliable sales for the past seven or so trading days. WTI has a target lower to 39.22, valid whilst below the 5 day MA around 42.11, a sale. Apart from Friday’s low at 40.22 there is not much support around and the two key numbers on WTI today are the target to 39.22 and the 5 day MA around 42.11.

to read the rest of the report, please click here

Posted by Robin Bieber