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Range bound. Watch RBOB at its 5 day around 151.76 for clues.

Published Monday, July 4th, 2016

Introduction.  The contracts are becoming increasingly range bound and stuck. They are using the short term MAs as either trapdoors to support or springboards to resistance but being contained at these range extremities. There are no targets either way until there are conclusive breaks above resistance, rather than frequent failures there, or below support which is holding. The clue to the next leg is how RBOB performs at the 5 day MA resistance, around 151.76. Moving over would encourage the rest to test initial resistance on WTI at 49.26 (34 day); Brent 50.91/51.02 (range); Heat 152.00 to 152.98 (range); and Gasoil 444.50 (34 day). These levels need to be moved and closed (m/c) over to green light a leg higher to the upper end of recent resistance. Watch RBOB at the 5 day around 151.76. This is the key pivot today – over it and the contracts are in resistance testing mode; below it and look for tests of support

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Posted by Robin Bieber