Technical & Fundamental Oil Reports Specialists

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Testing resistances. Extreme care here – failure likely.

Published Friday, February 26th, 2016

Introduction.  The contracts have rallied and are now testing the upper end of the recent range. There are no targets higher and the resistances are strong. The odds on failure up here are high. Part of the components of the key resistances are the 13 week MAs – these are at 33.60 WTI; 108.07 Apr’ Heat; and 319.50 Gasoil. Significant progress against the strong resistance above and suggestions of seriously higher numbers are not credible until there are moves confirmed by closes (m/c) on WTI over 34.88, May Brent 36.20 (Dec 2008 low); Apr’ Heat 112.52 (Dec 2008 low)’ Apr RBOB 132.45 then 134.83 (55 day MA); and Gasoil 329.50. The contracts may look frisky at the moment, but they always do when testing resistance or they wouldn’t be there in the first place. Treat any rally to resistance with the utmost care – the odds are on a failure.

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Posted by Robin Bieber