Technical & Fundamental Oil Reports Specialists

Follow us

Lower. Sell rallies.

Published Wednesday, January 20th, 2016

Introduction. There is no technical change – the trend remains down. Yesterday’s rally, which started in the morning, fell apart at the 5 and/or 8 day MAs. The stronger contracts like Brent and RBOB managed to make it near to the 8s, which were a sell. The rest failed around the 5s. There are targets lower on March WTI to 26.65; Brent 25.05; Heat 81.50; RBOB 96.69; and Gasoil to 245.50. RBOB closed only just below the bull/bear pivot at 102.65 (close 102.62) and this has green lighted the objective lower to 96.69. RBOB’s close was not convincing but it does not look good whilst below 102.65. The targets lower are valid whilst the contracts remain below the 8 day MAs – on March WTI around 31.32; Brent 29.80; Heat 96.82; RBOB 106.43; and Gasoil 280.75. Rallies to the 8s are sales. Do not be surprised by sharp rallies – the 5 day gap is widening again and is around $1.70 on March WTI – too wide to be sustainable for long. March WTI has an objective lower to 26.65 valid whilst it remains below the 8 day MA around 31.32, a sale. The target after that would be to 16.70. Initial resistance is at the 5 day MA around 30.45, also a sale for the bold, but a breach here would point to a run up to the 8 day.

to read the rest of the report, please click here

Posted by Robin Bieber