Technical & Fundamental Oil Reports Specialists

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Lower. Sell rallies.

Published Thursday, January 21st, 2016

Introduction.  There is no change to the technical view – lower. There are objectives below the market on WTI to 26.65; Brent 25.05; Heat 81.50; RBOB 96.69; and Gasoil to 245.50.  Run shorts to these levels. These targets are valid whilst the contracts remain below the 8 day MAs. In the meantime, rallies to the 5 and 8 day MAs are sells. Feb’ WTI hit what would have been its target lower to 26.65, and closed below, thereby green lighting the March down to this level. Do not be surprised by the odd price spike to the 5 and even the 8 day MAs. These rallies are unlikely to last and bears should take advantage. WTI has an objective lower to 26.65, valid whilst below the 8 day MA around 30.52. The next target on move confirmed by a close (m/c) below 26.65 would be to 16.70. Rallies to the 5 day around 29.75 and the 8 around 30.52 are sales. A move over the bull/bear pivot at 28.66 would point to a test of the 5 day.

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Posted by Robin Bieber