Technical & Fundamental Oil Reports Specialists

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Correction mode. Treat strength with caution.

Published Monday, February 15th, 2016

Introduction. Friday witnessed a violent correction that has, in all but the crudes’ case, taken the contracts above the short term (s/t) MAs. At the same time the stochastics have moved positive. This hints at some further upside potential. The crudes are above the 5 and 8s but below the 13s. A move confirmed by a close (m/c) over the 13s – around 30.26 WTI and 33.35 Brent (actually the 34 day, the 13 is a bit lower around 33.23) would make a return to the recent top of the range likely. In the meantime the rest of the contracts look like going higher yet so long as they hold over key supports. Heat over 103.92 suggests a leg higher to 109.86; RBOB over 101.59 points to a move higher to 108.06; and Gasoil over 306.25 suggests a move to 323.00. There’s some further upside potential in this correction, but it’s far too early to predict the end of the down trend. WTI is above the 5 and 8 day MAs, around 29.09 (8) and 28.08 (5). It has upside potential whilst this is the case. It needs to m/c over the13 day around 30.26 to spur a move higher to the 34 day around 31.72

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Posted by Robin Bieber