Technical & Fundamental Oil Reports Specialists

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Watch the crudes’ 34 day MAs. Lower likely.

Published Wednesday, June 15th, 2016

Introduction. The contracts are vulnerable and lower numbers are likely.  However some care is advised as the crudes hit and held their 34 day MA targets. The move lower from the short term (s/t) MAs to the 34 day MAs completes a price cycle and there is often a brief correction back higher whilst they hold. WTI has hit its target to 47.92 (34 day) as has Brent to the 34 day objective at 48.89 (overnight low at 48.91 is good enough). The crudes have competed a price cycle and now need m/cs below the lower 34 day at 47.58 WTI and 48.59 Brent to green light further weakness. Heat has an objective to 145.50 (34 day) and Gasoil to 437.00 (c/p) – virtually hit with a low at 437.75. RBOB has hit its target to 150.28 (200 day) and closed below green lighting the next objective to 147.12. The key technical indicators are negative, including the daily and weekly stochastics. The latter is suggesting some serious downside potential, but we need the m/cs below the 34s for that. Watch the 34s on the crudes closely they are the most important pivots on the board today.

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Posted by Robin Bieber