Technical & Fundamental Oil Reports Specialists

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Watch the key resistances

Published Thursday, March 17th, 2016

Introduction. The market performed well yesterday. Over the last two days it performed a text book “slingshot” correction from failing at the 5 and 8 day MAs to plunging to the 13s – and holding.  The contracts looked vulnerable but held the key 13 day MAs on the weakness and then rallied (yesterday) to close well.  That was classic up-trend action. However there’s a lot more work to do yet. This rally has only taken the action back up into the resistance danger zone. The contracts are now at key resistance where moves confirmed by closes (m/c) over are needed to green light targets higher. This resistance is on WTI at 39.02; Brent 40.94; Heat 124.11/25; and Gasoil 374.00. More worrying is the lack of harmony with this move higher. RBOB is reluctant. It is below the 8 day MA around 142.69, below the 200 day at 144.31 and way below the key pivot at 147.14. It made only marginal gains yesterday. If RBOB is giving one of its early warning signals then the rest may well fail up here. This lack of harmony should make one very careful at current levels whilst the key resistances are intact.

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Posted by Robin Bieber