Technical & Fundamental Oil Reports Specialists

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Watch the 5 and 8s. Long-term support holding.

Published Thursday, July 14th, 2016

Introduction.  Yesterday provided us with a text book demonstration of the power and relevance of the short term MAs. The recovery, on Tuesday, from assorted support compromising of long term 100 and 200 day MAs, and the odd c/p, fell apart yesterday at the 8 and 13 day MAs. Tuesday evening’s closes were above the 8s but below the 13s on all but RBOB , which was just above the 8 day but well below the 13. Yesterday the rally fell apart, in one form or another, at the 13s on all contracts and RBOB gave the early warning signal by failing to make any headway against the 8 day MA resistance. This was the most important pivot on the board and the failure there gave an excellent warning of the ensuing dump. The s/t MAs flagged caution yesterday and watching them carefully proved very valuable. The action that followed took the contracts below all the s/t MAs which acted as trapdoors to the lower 100 and 200 day MAs located around range support. There are no targets lower until these 100 and 200s are moved and closed (m/c) below.

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Posted by Robin Bieber