Technical & Fundamental Oil Reports Specialists

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Likely lower

Published Wednesday, February 3rd, 2016

Introduction. It appears bulls have run out of ammunition as yesterday saw yet another sell-off that is turning the technical picture of the energy complex bearish again. To begin with, all the daily slow stochastics have flipped negative. WTI closed below all of its daily short-term M/As although Brent, Heating Oil and Gasoil are holding the lowest of them, for the time being. The most bearish development of yesterday’s price action was provided by RBOB. This contract has broken and closed below the 100.00 mark and is at levels not seen for 7 years. WTI has already tested its 29.35/25 range support area this morning with a low at 29.40. On a close below this support the recent low at 27.56 should be revisited. This is where those who decided to short the contract last night are advised to cover. These shorts should use the 13-day M/A resistance, which is currently at 30.94 to protect their positions.

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Posted by Robin Bieber