Technical & Fundamental Oil Reports Specialists

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Odds building on lower numbers.

Published Tuesday, June 14th, 2016

Introduction. The market is struggling and vulnerable. The attempt to recover yesterday failed at the short term (s/t) MAs, which remain sales on a rally.  RBOB failed to hold above the key 50% c/p at 154.16 and whilst this is the case one can expect lower numbers. RBOB was not even strong enough yesterday to trouble the s/t MA resistances. There are targets lower on the crudes to the 34 day MAs on WTI to 47.87 and Brent to 49.87. Heat has held over the 21 day MAs at 150.36/13 and needs a move confirmed by a close (m/c) below here to green light the next slingshot (s/s) leg down to the 34 day at 145.24. RBOB has a target lower to the 200 day MA at 150.28, and Gasoil to the c/p at 437.00. The daily stochastics are negative and some contracts are displaying pronounced bearish divergence, which is usually a reliable signal for further weakness.  The weekly stochastics are also negative and flagging a correction lower to the up-trend that has been in place for six months or so. Use RBOB at 154.16 as a pivot – whilst below here, and the s/t MAs on the rest, the contracts are likely to head lower.

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Posted by Robin Bieber