Technical & Fundamental Oil Reports Specialists

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Watch the key levels in red and stay neutral

Published Friday, February 5th, 2016

Introduction. The contracts lack harmony at the moment and the market is reacting to every latest headline, mesmerised by the odds of an emergency OPEC meeting, Saudi/Russian talks…. or not. Bear trends need a lot of bullish news to turn them around, and nudges and winks simply don’t cut it for more than a day or so. In short, gravity will come into play unless the market has something substantial to chew on pretty soon. Meanwhile the contracts are aimlessly ebbing and flowing. Key resistance levels are impeding any northerly progress. WTI has slid below the important 32.40 level. Brent failed at the critical 35.94 long term c/p. Heat faltered at the potent 112.52 level, and RBOB is clinging on just over the important 101.59 level. Meanwhile Gasoil although penetrating the long term c/p resistance at 313.25, closed below. Four of the five contracts are being held back by key resistances, in red. These need to be safely negotiated and closed over before there is a real chance of upside. The long term stochastic indicators may well be hinting at higher numbers but they can take a considerable time to come good.

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Posted by Robin Bieber