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Both contracts are at crucial resistances

Published Wednesday, May 21st, 2014

It was argued in yesterday’s report that the ICE contract is firmly negative and NYMEX is neutral-to-bearish where rallies to resistances are a sell. Whilst this still seems to be the case yesterday’s argument has weakened overnight and the tone of tomorrow’s report might be different. At the moment there is still a chance that both contracts are going to trade lower but they will need to do so in a hurry otherwise the bearish tone will prove to be unjustified.

June ICE: This contract did not quite get down to the nearest target, the 43.25 monthly range support, as it bottomed out at 43.60. Shorts are still probably short. This morning the 44.70 range resistance is being put under pressure. It was advised yesterday to protect short positions on a close above this resistance and this view is still more or less valid.

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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.