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Possible test of supports on both contracts

Published Tuesday, May 6th, 2014

June ICE: Pre-weekend short-covering on Friday pushed the price of the contract slightly higher. This upside correction was not strong enough to have the contract test the sellable 8-day M/A resistance which is currently at 47.42. Order is being restored this morning as the market has fallen below the 5-day M/A at around 46.69. This means that the contract is still more on the negative and could easily test the 45.50 range support. A close below this level is a sell as such a move would validate the next downside objective, the range support at 41.75. An eventual test of the 8-day M/A is also deemed to be a sell but it is strongly recommended to cut losses if closed over. In that case the daily slow stochastics would flip positive with a bullish divergence on it

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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.