Saturday 6 December 2014

Oil Poised to Extend Drop After Hitting Five-Year Low - Bloomberg

Oil Poised to Extend Drop After Hitting Five-Year Low - Bloomberg:



"West Texas Intermediate and Brent crudes are poised to decline from the lowest closing levels in more than five years after shrugging off a sign that the market has dropped too fast.



The 14-day relative strength index (BCOM) for WTI slipped to 27.0364 yesterday, according to data compiled by Bloomberg. Investors typically start buying contracts when the reading is below 30. The 14-day RSI for Brent slipped to 23.6843. The move highlights the extent of the bear market in the face of technical support.



“We’re way oversold in both Brent and WTI, not to mention the products, and the market’s not responding,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone yesterday. “A market that ignores these bullish signals is heading much lower.”"



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