Technical & Fundamental Oil Reports Specialists

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All targets lower hit. Now be careful.

Published Wednesday, December 23rd, 2015

Introduction.  All targets lower have been hit. There are no further objectives lower whilst the key supports hold. These were also the erstwhile targets. This is probably only a temporary situation, but we are most likely going to see some pre-holiday short covering and steadiness. The key supports are at 35.35 WTI; 36.20 Brent; 108.74 Heat; 117.63 RBOB; and 323.50 Gasoil. Whilst these hold stay patient and sell rallies to the 5, 8 or 13 day MAs depending on which contract is in the cross hairs. The trend is down, but don’t be surprised by attempts to hold and firm a bit. WTI has held the support at 35.35. It has no further objective lower for the moment. A move confirmed by a close (m/c) below 35.35 would green light the next target lower to 34.53, with the Dec’ 2008 low at 32.40 in its sights. It has managed, overnight, to move over the 5 day MA around 36.10 and whilst this holds there is no hint of immediate lower numbers. Resistance starts at the 8 day around 36.70, which is likely to be tested, followed by the 13 day around 37.41. A rally to both is a sell, but the less bold may well want to wait for the 13 to be hit before selling.

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Posted by Robin Bieber