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Early rally then lower on ICE – Patience on NYMEX

Published Thursday, May 1st, 2014

June ICE: The contract settled well below Tuesday’s low at 47.20 and the monthly correction point at 47.18. The latter is the 50% c/p of the monthly move up from 18.20 in August 2009 to 76.15 in March 2013. Simply put it, the close of yesterday was a sell. The fresh move down green-lighted the next objective to the downside. It is the 45.50 range support, the monthly low back in November 2011. It is worth remembering that yesterday’s move actually validated a longer-term target – the 61.8% retracement level of the above-mentioned move up at 40.35. It is, however, unlikely that the contract will fall down there in a straight line so it is only reasonable to take it step by step.

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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.