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Further test of resistances is expected today.

Published Wednesday, June 22nd, 2016

Introduction. At times the market looked awful yesterday but the price action showed us that the closing prices are the most important ones as far as technicals are concerned. Those who tried to pre-empt and started to sell short over the course of the day based on dips below assorted moving average supports got burnt by the close. The energy complex started to recover during the London afternoon and closed back over all the relevant M/As. Perhaps more importantly, the RBOB contract also settled above the crucial 34-day M/As. Further boost was given after the close in the form of the API statistics and this morning the market is making further gains. Given the volatile nature of the markets ahead of tomorrow’s EU referendum here in the UK anything can happen but a technical snapshot this morning indicates further tests and resistances being put under pressure. The bottom line is that the market is in a healthy state as long as the 13-day M/A, or in the case of RBOB the 34-day M/A supports hold.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.