Technical & Fundamental Oil Reports Specialists

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Watch RBOB at the 55-day and the 34s on the rest again

Published Tuesday, November 3rd, 2015

Introduction. Yesterday was the first day in a week or so that the market wobbled and looked vulnerable. Until then it had had a pretty trouble free passage higher. The fragile and wobbly state witnessed yesterday was largely because the contracts had, by Friday, completed a “slingshot” move higher from the short term (s/t) MAs – the 5, 8 and 13s – to the 34s. RBOB had provided both the lead and the inspiration for this move. The 34s are fearsome and dangerous resistance and until they are closed over there are no targets higher. At the moment the only contract to be above both the contract and continuation 34 day MAs is RBOB. These are key support at 135.27 and 133.63. They held yesterday and must hold today for the rest to be in resistance testing mode. Meanwhile all contracts bar Brent are above the s/t MAs. Brent has slid below the 5 day. All contracts have positive stochastics. Do not write off this move higher yet. It’s too soon, and certainly premature, whilst RBOB is above the 34s.

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Posted by Robin Bieber