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Valid downside targets on ICE – NYMEX is shaping up to go lower

Published Wednesday, February 26th, 2014

April ICE: The downtrend continues on this contract. It closed lower on the day but it did not test its next profit-take level. Shorts who were looking to cover another small chunk of their positions will be pleased to see that this test has taken place in the early hours of today. The 56.00 range support was briefly broken below providing bears with the opportunity to put more money in the bank. The next profit-take level is the 55.20 support. This is the monthly low from February 2012. On a break and close below this support the ultimate downside objective will be green-lighted….

April NYMEX: This contract is volatile and it closed slightly up on the day therefore it did not give a definite sell signal. The 13-day M/A that is at 4.674 today was not closed below but has been penetrated this morning. Yesterday’s price action took the contract below the 13-day, down to the 50% retracement level of the January-February rally at 4.534 with a low of 4.535 before a rally towards the close….

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.