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Tentative targets higher. Watch the key pivotal supports, and RBOB at the 34 day.

Published Wednesday, June 8th, 2016

Introduction. All contracts, less RBOB, performed well yesterday and have tentative targets above the market. RBOB pretty much went sideways but held the two 34 day MAs at 158.78 and 157.98. These complete a price cycle lower for RBOB and whilst they hold there is no further downside for this contract. Its relative weakness to the rest is unharmonious and a worry. However whilst the 34s hold it is not acting as a deadweight on the rest, but is a warning to be careful. The rest have targets higher just above the market – WTI to 50.92 valid whilst above 50.21; Brent to 51.65 valid whilst over 50.96; Heat to 157.96 valid whilst above 153.38; and Gasoil to 465.00 valid whilst above 454.00. Moves confirmed by close (m/c) above these objectives would green light further targets higher. With RBOB not kicking in but only holding it’s advised to be a bit careful around the objective areas and until this break out north beds in. WTI has a modest target higher to 50.92, valid whilst above 50.21. A m/c over 50.92 would green light a more substantial leg higher to 52.25. It is important that 50.21 holds or this contract will be back in short term (s/t) MA testing mode down to 49.67/48 (5 and 8 day) and 49.23 (13 day). Watch 50.21 carefully on any dip.

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Posted by Robin Bieber