Technical & Fundamental Oil Reports Specialists

Follow us

Gap has been filled on ICE – Test of resistance on NYMEX

Published Wednesday, April 23rd, 2014

May ICE: This contract is behaving in text-book fashion. It did not quite get down to its next objective yesterday but it has duly done so this morning. This target is the gap at 48.80 left on the daily chart on April 7. Since it has been filled this morning shorts are likely to be flat. They will be looking to short the market in one of the following two cases: either when the 48.80 level is closed below or when 5 and the 13-day M/A resistances are tested. In the former case they are advised to take profit if the 47.70 support is tested. This is the lowest print on a continuation basis since November 2010 therefore a close below this area will be considered rather bearish. Since the contract is undoubtedly in a downtrend rallies are also seen as selling opportunities.

To read the rest of the report, please click here 

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.