Technical & Fundamental Oil Reports Specialists

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Watch RBOB, and the s/t MAs on the rest for clues.

Published Friday, July 1st, 2016

Introduction.  The market performed poorly yesterday, and had all the hall marks of being erratic and directionless. RBOB had been relatively unenthusiastic from the outset, being below the 8 and 13 day MAs and with a negative stochastic. It failed to hold the 5 day MA yesterday, around 152.21, and this encouraged the rest to weaken, but they managed to hold above the short term (s/t) MAs. That is about the extent of anything positive to say about yesterday. There are now two clues to the next leg. Firstly can the contracts, other than RBOB, hold over the s/t MAs? They are currently all being tested at time of writing. Failures at the s/t MAs will cause a trapdoor move lower to the 55 day MAs. Holding them would point to tests of resistance later. The s/t MAs will act as trapdoors to lower numbers or springboards to resistance – watch them carefully. Secondly, RBOB is critical today and the key to holding is the 100 and 200 day MAs at 148.39. A failure to hold these two long term MAs would be bearish across the board. However, RBOB’s 5 day MA, today around 151.01, needs to be watched carefully. A move and close (m/c) over is needed for any upside potential. Watch RBOB carefully today.

to read the rest of the report, please click here

Posted by Robin Bieber