Technical & Fundamental Oil Reports Specialists

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Both contracts are more on the negative side

Published Monday, May 19th, 2014

June ICE: Friday’s performance did nothing to encourage the bulls. Not only are the daily short-term M/As (as a matter of fact the medium and long-term daily M/As, too) all above the current price action and the daily slow stochastics is negative but the recent low at 44.70 was also closed below at the end of last week. This latest move down that started in the middle of April shows no sign of reversing. The long-term downside objectives, therefore, is still valid. These are the monthly high in January 2010 at 41.75 followed by the 61.8% retracement level of the August 2009-March 2013 uptrend at 40.35. Of course, the contract is not expected to fall down to these levels straight away. Those who are currently short are advised to take profit on a test of the 43.25 monthly range support and re-sell if closed below.

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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.