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ICE GASOIL (V20): Bullish Outlook

OIL TECHS
  • RES 4: $358.25 - High Sep 3
  • RES 3: $355.50 - High Sep 4
  • RES 2: $352.00 - 50.0% retracement of the Aug - Oct decline
  • RES 1: $345.50 - High Oct 6
  • PRICE: $337.00 @ 06:58 BST Oct 9
  • SUP 1: $327.25 - Low Oct 6
  • SUP 2: $308.25 - Low Oct 2 and the bear trigger
  • SUP 3: $310.00 - Low May 18
  • SUP 4: $298.91 - 76.4% retracement of the Apr - Aug rally

A sharp rally Monday in Gasoil futures highlights a reversal of the downtrend that has dominated since Aug 5. Tuesday's follow through reinforces this shift in sentiment. Furthermore, a reversal pattern has appeared on the chart, a bullish engulfing candle line on Monday. This signals scope for a recovery towards $352.00 next, a Fibonacci retracement. On the downside, a move below $308.25 is required to reinstate a bearish theme.

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