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Both contracts are stuck – A little patience is needed

Published Thursday, March 6th, 2014

We pointed out the possibility of break-outs on both contracts yesterday with ICE falling below supports and NYMEX popping above resistances. This prediction proved to be unjustified. Therefore the contracts are still bound by their current ranges and it is recommended to wait for fresh developments.

April ICE: The lowest of the daily short-term M/A supports, the 8-day was penetrated but not closed below. It is presently at 57.61. A close below this level is a sell. If it were settled below then the contract should fall down to last week’s low at 55.71. Shorts should cover when the latter is approached and sell again on a close below. On such a move the monthly correction point at 54.02 will become the next target. Short positions will have to be protected if the highest of the short-term M/As were closed over.

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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.