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Watch the s/t MAs and RBOB at 96.70

Published Monday, February 22nd, 2016

Introduction.  Last week’s price action was characterised by repeated failures at resistance and by the short term (s/t) MAs holding as support. The lack of follow through at resistance was entirely consistent with no bullish facts to back up the headlines.  Until there is something substantial out of Russia/Saudi the market will continue to swing violently with the headlines. The s/t MAs are acting as either trapdoors to support or springboards to resistance, as is customary in ranges, and they are the key to any next leg. Currently the contracts are right amongst the s/t MAs – April WTI is just above them all; Brent is above the 8 and 13 but below the 5; Heat above the 8 but below the 5 and 13; RBOB below them all but holding the key 96.70 level; and Gasoil below the 5 and 8 but above the 13. That’s a mixed bag, but for guidance on the next leg watch RBOB at 96.70 – a move confirmed by a close (m/c) below would be negative.

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Posted by Robin Bieber