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ICE is negative – Possible dip on NYMEX which is a buy

Published Friday, May 30th, 2014

June ICE: On the day of its expiry the June contract fell to and closed below its next downside objective. This is the monthly high in January 2010 and is at 41.75. Given the contango nature of the market the July contract settled nearly 300 points above the June. The new front-month contract achieved an all-time low yesterday at 44.15 before settling slightly above it. It is only logical to conclude that on a close below yesterday’s low the July contract is very likely to take over the role from June, ie. it will be expected to fall to 41.75 and possibly down to 41.00, yesterday’s low on the June contract. The trend is down so an eventual rally to the 8-day M/A at 45.59 is a sell.

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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.