Technical & Fundamental Oil Reports Specialists

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Resistances failed to settle over on Friday

Published Monday, February 1st, 2016

Introduction. With the exception of Gasoil every contract gained further ground on Friday but the technical picture has not turned unreservedly bullish. Some serious resistances were assaulted but they proved too tough a nut to crack and were not closed above. We need to see closes over these crucial resistances to turn firmly positive. The good news is that the weekly and the monthly slow stochastics have all turned north with bullish divergences on them but once again: strong resistances must be conclusively closed above in order to be certain of higher numbers in the foreseeable future. WTI will need to close above Thursday’s high and the 34-day contract M/A, both at 34.82 and over the 61.8% correction point of the January sell-off at 34.96. Such a settlement will likely push the price of this contract significantly higher. The contract is still more on the positive side and will remain so unless the 5-day M/A at around 32.69 and more importantly the 2009 low at 32.40 are settled below.

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Posted by Robin Bieber