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The s/t MAs are the key and watch RBOB’s carefully.

Published Wednesday, February 17th, 2016

Introduction.  Yesterday was a pretty good example of “buy the rumour, sell the fact”. The threat of a meeting was enough to spur the ursine community into short covering, but the results of the meeting were disappointing and the market dumped. Without wishing to sound like a broken record – the market needs more than rumours to change direction of the trend and very soon, without hard facts, the threat of a meeting is going to be ignored. Since this threat is what has caused the corrections it’s pretty obvious what will occur as soon as indifference sets in. Soon there won’t be any shorts to cover! Three of the five contracts hit their targets higher yesterday, and the other two neared them. The immediate upside objectives were hit. There are no targets either way now. At the moment the s/t MAs are the key. Use them as “trapdoors” to support or “springboards” to resistance – like yesterday. Below them and the contracts test support – above and they run up to resistance.  At the moment the contracts are all above the 5 and 8 day MAs but below the 13s. Use these as pivots and sit on one’s hands until the next leg is clear.

to read the rest of the report, please click here

Posted by Robin Bieber