Technical & Fundamental Oil Reports Specialists

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

Published Thursday, November 19th, 2015

Introduction.  The market is in a down trend but in a correction phase. The warnings were there yesterday that a correction was a distinct possibility and was manifested by RBOB holding the 124.84 level (5 day MA and more importantly a key range support), Heat staying over 137.45, and to much lesser extent Gasoil holding 120.50. RBOB at this time yesterday morning was just above the 5 day MA and 124.84 – the early warning signal. This should have been a cause for concern for the bears, because of the danger of a “slingshot” move higher to the 8 day MA. Such a move would also lend vicarious strength to the rest. This is exactly what is happening now – RBOB has moved over the 8 day around 127.97, and the c/p at 128.86, and if the 8 day holds it will make a further thrust towards the 13 day MA around 132.12. The “correction danger”, prevalent yesterday morning, had already negated any further targets lower. The question now, as the remainder of the contracts hurdle the 5 day MAs (below the market now as pivotal support) is how far does this correction go and the answer is probably to the 8 day MAs. Do not be surprised by such a move and watch RBOB – it is the key.

to read the rest of the report, please click here

Posted by Robin Bieber