Technical & Fundamental Oil Reports Specialists

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Watch the key supports. They must hold or it’s very bearish.

Published Wednesday, January 6th, 2016

Introduction.  The failure by RBOB at its 34 day MA support provided the technical momentum to push all contracts lower to range supports. The action yesterday was a classic example of how markets behave when stuck in a range and have failed at the upper end of resistance. The contracts sank initially to the clustered short term (s/t) MAs (the s/t MAs logically always cluster together in ranges), failed at these s/t MAs and then headed for the bottom of the range support. This is pretty much where we are now. There are no targets lower until this key support is moved and closed (m/c) below. It is strong and potent so do not pre-empt. It is on WTI at 35.35 (a very long term c/p); Brent 36.20 and 35.94 (Dec 2008 low and a very long term c/p); Heat 112.52 and then 111.07 (112.52 was closed over by 1 point last night and is the Dec 2008 low); RBOB 123.12/11; Gasoil 323.50 then 313.25 (the latter is a long term c/p). M/cs below these key supports would green light targets lower. Meanwhile the stochastics are negative on all but Heat, and all contracts, bar RBOB, which closed above its 13 day MA, are below the s/t MAs. Watch the support very carefully today – it’s likely to come under pressure.

to read the rest of the report, please click here

Posted by Robin Bieber