Technical & Fundamental Oil Reports Specialists

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Lower. Downtrend still in place.

Published Thursday, December 17th, 2015

Introduction.  The correction higher did not take long to run out of steam, which is usually the case in downtrends. It failed at the 8 day MA on WTI and the 5 day MAs on Brent, Heat and Gasoil. The closes were pretty negative and suggest lower numbers back down to the lows of three days ago. There are now targets lower again on WTI to 34.53; Brent to 36.33/20; Heat to 108.74; RBOB to 119.62/56; and Gasoil to 323.50. Run shorts to these levels. Moves confirmed by closes (m/c) below would green light a further set of objectives lower – down to 32.40 WTI for example – and general weakness. Heat and Gasoil are already below the Dec’ 2008 lows at 112.52 and 351.50, which is hardly setting a good example and it’s highly likely that the rest suffer vicariously. The trend is down. Stick with it – run shorts to targets levels and sell  rallies to the 5 and 8 day MAs. WTI breached, but then failed at, the 8 day MA and now has an objective lower to the recent lows at 34.53. Its longer term objective is to the Dec 2008 lows at 32.40, which becomes the target on a m/c below 34.53. A m/c below 32.60 would green light a further objective south to 26.65

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Posted by Robin Bieber