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Watch RBOB. It is leading the rally and holds the clues.

Published Friday, November 20th, 2015

Introduction.  RBOB holds the clues. The trend remains down, but still in the early stages of a corrective phase higher. The contracts have all pretty much held support and there are, at the moment, no targets lower. All contracts bar WTI have moved back over the 5 day MAs. Heat closed below this MA last night and Brent closed right on it. The 8 day MAs are strong resistance above current prices. RBOB, however, is on a slightly different technical page. It is above the 5 and 8s, and looks like putting the c/p at 130.52 (it failed here yesterday) and the 13 day MA around 130.88, under pressure. This price band – 130.52 to 130.88 – is the most important resistance on the board today. A move confirmed by a close (m/c) over would be positive for the rest and give RBOB further upside. To keep the current correction on track to test resistances RBOB must stay over the 8 day MA around 127.00. RBOB is setting the example and giving early warning signals that the rest will follow – watch it careful today. WTI is still below the 5 day MA around 42.03, and this is initial resistance, followed by the 8 day round 42.42.

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Posted by Robin Bieber