Technical & Fundamental Oil Reports Specialists

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Watch RBOB – it looks in poor shape and the rest are likely to follow.

Published Wednesday, June 1st, 2016

Introduction.  The contracts did everything that was expected of them yesterday – running up to the recent highs on follow through from being over the short term (s/t) MAs – but then failed. The non-participating contract was RBOB, and it was unenthusiastic from the outset, which was the (early) warning signal that all was far from well with yesterday’s move higher. Watching RBOB carefully is usually a “must” and yesterday was no exception. RBOB’s action now suggests lower numbers, but there’s more work to do yet. WTI, Heat, and Gasoil are below the 5 and 8s pointing to tests of the lower 13 day. Brent and RBOB are below them all suggesting lower numbers. The stochastics are negative on all contracts, with bearish divergence on the crudes. These are hardly the ingredients of a market that wishes to go higher. Rather the contracts look tired and are likely to head lower. If RBOB stays below the 162.15 – a range pivot – the odds are that it will head lower to the 34 day MA around 157.22 and take the rest south with it. For this to occur the rest need to m/c below the 13 day MAs.

to read the rest of the report, please click here

Posted by Robin Bieber