Technical & Fundamental Oil Reports Specialists

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All targets lower hit. Now be careful.

Published Tuesday, December 22nd, 2015

Introduction.  All contracts bar Gasoil have hit their objectives lower. The downtrend is intact, but there’s good chance that the contracts will attempt to correct higher and recover a bit. RBOB finally linked up with the rest, having been de-linked for a few days, and plunged lower to hit its target to 119.62 – the low of 119.63 is deemed sufficient. Jan’ WTI had hit its target to 34.53, and Feb’ closed over here negating any objective lower. Brent and Heat had hit the targets to 36.20 and 108.74. Shorts should now have been covered and only re-set on moves confirmed by closes (m/c) below these erstwhile targets, and/or on rallies to the 8 day MAs. It’s advised to be patient when the contracts hit the 5 day MAs as they may well breach these fast MAs and head for the 8s before faltering. The stochastics have flipped positive on WTI, Heat, and Gasoil, which may well be flagging a temporary recovery. Feb’ WTI needs a m/c below 35.35 to green light the next leg lower to 34.53. Whilst above 35.35 it has no target lower. The 5 day MA is around 36.20 and the 8 around 36.80 – the latter is a sale.  The positive – albeit precarious – stochastic, and support holding generally suggests that the 5 day could easily be breached and this contract run up to the 8, which is the initial selling level.

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Posted by Robin Bieber