Technical & Fundamental Oil Reports Specialists

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There is still no clear direction

Published Monday, March 24th, 2014

At times the complex looked encouraging on Friday as every contract broke over important resistances only to see some profit-taking ahead of the settlement that pushed the prices well below these levels. The selling towards the close, however, was not strong enough to send the contracts below supports. We argued in Friday’s report that last week’s choppy performance indicated that the market is increasingly range-bound. The slightly stronger closes together with weaker numbers this morning confirms this view. WTI closed a few points over the 13-day M/A that is currently at 99.28 and right on the 99.46 correction point resistance. Should this area be settled above this contract is expected to jump up to the 102.17 range resistance. The fact that the 5 and 8-day M/As (99.13/98.72) are holding could mean that this resistance level will be kept under pressure but it is the close that matters. On the downside longs are likely to liquidate on a close below the 8-day M/A

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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.