Technical & Fundamental Oil Reports Specialists

Follow us

Vulnerable. Watch RBOB at 154.16.

Published Monday, June 13th, 2016

Introduction. The up-trend has been seriously damaged by Friday’s action. However, the first twenty four to forty eight hours of a change in direction is always the most dangerous and one should be wary of a “bear trap”. The key to the next leg and valid targets lower is the action on RBOB at 154.16. This is the 50% c/p of the move from 218.57 down to 89.75. It is the most important pivotal support on the board today. A move and then a close (m/c) below would green light a target lower on RBOB to 150.31, and then validate objectives south on the rest too. These objectives would be on WTI to 47.75 (34 day); Brent to 48.77 (34 day); Heat to 149.90 (21 day); and Gasoil to 432.00 (34 day). The key technical indicators are negative – the action is below the short term MAs and the stochastics are negative, with some bearish divergence, which is very worrying. 154.16 is all that is holding the market and keeping it from a further move south and targets lower. Moves back over the lowest s/t MAs would suggest a “bear trap” – unlikely.

to read the rest of the report, please click here

Posted by Robin Bieber