Technical & Fundamental Oil Reports Specialists

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Upside developing, but keep exposure limited until confirmed

Published Thursday, February 4th, 2016

Introduction. The contracts are going to be subject to violent swings as news headlines continue to influence it. However there is a picture developing that suggests some upside. The long term stochastics on the weekly and monthly charts are giving some clues – WTI and Gasoil’s monthly stochastic is still just negative but were they to flip positive on some more strength they would do so with bullish divergence. Brent’s monthly is about to move positive with bullish divergence. Heat’s is positive but the bullish divergence is dubious. The weekly stochastics are positive on all but RBOB. These longer term indicators are suggesting the market will move into in resistance testing mode. This would be consistent and dependent on the flavour of the most recent positive headlines. All contracts bar RBOB are above the short term (s/t) MAs and all bar WTI and RBOB have positive daily stochastics. There are key levels close to the market that need to be moved and closed (m/c) over for a clear path higher.

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Posted by Robin Bieber