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At s/t MA support. Watch RBOB around 96.80/70 key pivot.

Published Friday, February 19th, 2016

Introduction.  The market rallied on a text-book “springboard” move from the short term (s/t) MAs to the close or exact proximity of the key resistances and failed. These resistances were on Apr’ WTI at 34.20 (high was at 34.21 – about as precise as it gets); Brent  35.94 to 36.20 (the lower level missed by 21 cents); Heat 111.81 (missed by 26 points); RBOB 101.59 (exceeded by 99 points) and Gasoil 329.50 (exceeded by $1.50). These remain hazardous levels that are likely to be tested again should we receive yet another bullish headline. At the risk of being repetitive these headlines need to turn into hard facts or the contracts are likely to fail at resistance. The inability to push above resistance caused a dump to the s/t MA supports yesterday. The key is now the action at these supports – a failure at them would point to a “trapdoor” move down to the recent lows. All contracts, bar RBOB, are above them all. Watch RBOB – it is below the 5 and 13 and just holding the 8, around 96.80/70. This is now a “must watch” support because RBOB gives so many early warning signals. A move confirmed by a close (m/c) below 96.70 would be negative and may well take the rest lower with it. Watch RBOB.

to read the rest of the report, please click here

Posted by Robin Bieber