Technical & Fundamental Oil Reports Specialists

Follow us

Watch RBOB at the 34 day MAs – they hold the clues

Published Friday, May 6th, 2016

Introduction. RBOB held the clues to yesterday’s action and failure. Firstly, early on it was holding the continuation 34 day MA at 148.19. This caused a short covering rally which took it over the contract 34 day at 150.17 and then the market started to run up. Whilst the rest breached and moved over the short term (s/t) MAs, RBOB only managed to make it to the 5 day MA and failed. RBOB’s inability to make any progress against its lowest s/t MA – the 5 – was a sign of things to come – a general failure. The closes had WTI below the 5 and 8 day MA but holding the 13; whilst the rest closed below all the s/t MAs. The clue today is again RBOB. It is holding the key continuation 34 day at 148.36. This is the most important support on the board. A move confirmed by a close (m/c) below here would green light a target south both on it and the rest of the contracts. At the same time the contract 34 day MA at 150.19 is initial and pivotal resistance, followed by the dangerous 5 day around 150.67. The action on RBOB at the 34s is key and will give us the next leg – watch them.

to read the rest of the report, please click here

Posted by Robin Bieber