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There was no break-out on Friday – More patience needed

Published Monday, March 10th, 2014

It seems that the 34-day and the daily short-term M/As are still the ones to watch on both contracts. The bad news is that these indicators still make up the current trading ranges and the contracts are stuck between them. The good news is that because of the moving nature of them these trading ranges are getting narrower by the day. It should not be long now before some kind of technical break-out takes place and the next legs become clear.

April ICE: This contract did its best to challenge the 34-day M/A resistances. On a contract basis it is at 59.72 and on the continuation chart this resistance is at 60.17, very close to Friday’s high of 60.15. A conclusive close over the latter is considered positive. If such a move takes place we should expect further strength up to the contract high on February 7 at 62.07 and may hit the high of last Monday at 62.10. Longs are recommended to take profit if the latter resistance is in sight.

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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.