Technical & Fundamental Oil Reports Specialists

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Watch RBOB – it holds the clues

Published Monday, January 4th, 2016

Introduction. It is time to be very careful. The New Year’s Eve’s settlements had all the contracts over the short term (s/t) MAs and the stochastics were all positive.  In addition, the weekly stochastics are all very low and threatening to turn positive, which would be supportive and point to higher numbers. Furthermore, long term supports, mostly but not only the Dec 2008 lows, have held and there are no further objectives south at the moment. There is a chance of higher numbers, which may prove to be only a nasty correction higher, but there is little point in standing in its way. The key to this correction lasting a bit longer yet is that the contracts must stay over the s/t MAs – that is the critical support. A failure to hold over the s/t MAs would mean a re-test of the recent lows and long term support. The clue to the next leg is RBOB – if it stays over the 34 day MA at 127.31 it is holding well and if its moves and closes (m/c) over the 55 day MA at 129.64 it, and the rest, have further upside potential. Watch RBOB today – it may well hold all the answers.

to read the rest of the report, please click here

Posted by Robin Bieber