Technical & Fundamental Oil Reports Specialists

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Recovery potential whilst RBOB is above the 5 and 8 day MAs.

Published Friday, July 15th, 2016

Introduction.  The contracts are very well supported, for the most part, by the 100 and 200 day MAs, and the odd c/p. The crudes for example held the 100 day MAs yesterday. There are no targets lower whilst these potent supports hold. The upside is being capped by the short term (s/t) MA resistances, where the market failed, on all but RBOB, yesterday. The crudes failed at the 8 day MAs, and Heat and Gasoil at the 5s. However, RBOB closed over both the 5 and 8 day MAs and this suggests more of a recovery to the 13 day MA around 143.68. This is likely to be another of RBOB’s reliable early warning signals of what’s in store for the rest – so bears be careful. The view that a recovery is likely is held whilst RBOB remains over the 5 and 8 day MAs around 140.17 and 139.69 – these are the most important supports on the board today. Whilst above RBOB’s 5 and 8s the market generally is ok and should try for higher numbers.

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Posted by Robin Bieber