Technical & Fundamental Oil Reports Specialists

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Down trend intact. Targets lower. Sell rallies.

Published Friday, January 15th, 2016

Introduction.  The contracts remain embedded in a down trend and it is not advised to play against it. There are targets lower to 26.65 WTI; 25.05 Brent; 81.15 Heat; 102.31 RBOB; and 245.50 Gasoil. These are valid whilst the contracts remain below the 8 day MAs, which are around 31.82 WTI; 32.15 Brent; 101.64 Heat; 110.27 RBOB; and 300.75 Gasoil. Rallies to the 8s would be sells. The long term view (expressed in a separate email yesterday evening) is that the contracts have long term objectives lower – to 10.35 WTI (valid whilst below 36.35) and Brent to 9.55 (valid whilst below 35.94). The rest would follow south accordingly. Stick with the down trend, and continue to expect erratic price action. WTI‘s immediate target lower is to 26.65, valid whilst it remains below the 8 day MA around 31.82, which is a sell on a rally. The 5 day MA is lower around 30.83 and could easily be breached on a rally. Staying below the 5 would keep the downside pressure on this contract.

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Posted by Robin Bieber