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Failures at Resistances

Published Thursday, May 22nd, 2014

We saw both contracts failing at resistances yesterday. This probably makes shorts a bit more relaxed but after these failures the contracts did not exactly nose-dive. To put it simply, the sentiment is still negative but we are going to have to see a confirmation of this today otherwise higher numbers could take place in the foreseeable future.

June ICE: The resistance in question is the 44.70/72 area. The former is a range and the daily low on the June contract on May 7 whilst the latter is the 8-day M/A. No short positions should be held on a close above this area. If they were settled above the technical picture would flip neutral. Going long is only recommended if the 13-day M/A at around 45.15 is settled above. In this case the next serious resistance level will be 46.90, the daily high on May 9. This is the upside dealt with.

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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.