Technical & Fundamental Oil Reports Specialists

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Both contracts are negative for the time being

Published Thursday, April 3rd, 2014

May ICE: So far so good, I hear shorts saying. They had plenty of opportunities yesterday to put some money in the bank as the contract lost more than 4% bringing the total loss to 16% since the daily short-term M/As were broken and closed below on March 17. In fact, they have not been settled over ever since therefore this contract is undoubtedly in a downtrend. The nearest downside objective is still very much valid. This is the 50% correction point of the monthly uptrend between August 2009 and March 2013 at 47.18. On a test of this long-term, important and strong support all of any remaining short positions should be covered. An eventual close below this support is mega-bearish. It is all fine but what if this view proves to be incorrect?

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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.