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ICE is still negative – NYMEX at last ditch of support

Published Monday, April 28th, 2014

None of the contracts lived up to their expectations on Friday but the technical picture has not changed. Although ICE natgas failed to close below supports and green-light the next objective on the downside it did not bother resistances either. The NYMEX contract settled lower on the day but the last ditch of support is still holding. Please note that from today we shall concentrate on the June contracts.

June ICE: There are no objectives either way on this contract. It tested its support on Friday but did not settle below that. The gap on the June contract, which was filled last Wednesday and the low of last week is at 48.52/27. If we see a close below this support the odds will be on lower numbers and the market will be expected to fall to the 47.40 range support. The latter is the daily low on the June contract from April 4. A rally to the 8-day M/A at around 49.87 is still deemed to be a sell but shorts are highly recommended to protect their positions on a close over the 13-day M/A, which is currently at 50.40. Technically the trend is still down. A close below 48.52/27 will confirm this and only a break and settlement over the 13-day M/A will have bears running for the exit.

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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.