Technical & Fundamental Oil Reports Specialists

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Yet another failure at range resistance. Stuck.

Published Monday, February 29th, 2016

Introduction.  The contracts made yet more spirited tests of resistance on Friday and failed. The range resistance is very strong and the market remains range bound where the extremities are high risk for those expecting breakouts at resistance or collapses through support. The short term (s/t) MAs are stuck, clustered in the middle of the range, and acting as either trapdoors or springboards to range support or resistance. The contracts are all holding just over the s/t MAs, which are acting as initial support, and the stochastics are mixed, with WTI and Heat negative and the rest wavering. The down trend has developed into a range and at the moment there are no targets either way whilst the contracts remain hemmed in by range support and resistance. WTI is above the 5 and 8 day MAs around 32.53, holding just over the Dec’ 2008 low at 32.40 and above the 13 day MA around 31.93. It would need a move confirmed by a close (m/c) below the 13 to green light a move to the recent lows. Meanwhile the resistance is strong, starting around 32.70 (55 day) then 33.03 (13 week) then building as one approaches 34.72 (55 day). WTI, and the rest, have a lot more work to do to look anything other than stuck in a range.

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Posted by Robin Bieber