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Test of support on ICE – On NYMEX watch the 34-day M/A

Published Friday, February 28th, 2014

April ICE: It seems that all that happened yesterday was a short-lived upside correction and now the original trend is about to resume. The reason to say this is that the 8-day M/A resistance (57.12) was tested but was not broken above and this morning even the 5-day M/A (56.47) has been broken below. Now the 56.00 range support should be approached and if penetrated we should see further weakness down to the 55.20 range support. This is where shorts are supposed to put some more money in the bank and go completely flat on a test of the monthly correction point at 54.02. These short positions will only have to be protected if the 8-day M/A were conclusively settled over. Being the last day of the week as well as of the month it is worth having a look at the longer-term charts. In both cases we foresee lower numbers. This will be the third consecutive week that the 200-week M/A will be closed below (58.86) and February is the second month in a row that the 34-month M/A (62.47) will be above the settlement price.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.