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Both contracts are encouraging

Published Monday, June 16th, 2014

July ICE: The contract was neutral at the start of trading on Friday. We singled out the monthly c/p at 40.35 as the bottom end of the range and the 13-day M/A as the top end. It was also said that an eventual rally to the latter is a sell but shorts should cover and even go long if closed above. This turned out to be the case. The 13-day M/A resistance that is currently at 41.73 was closed above. There has been fierce follow-through buying this morning that pushed the price of the contract above the 44.46 c/p resistance. This is the 38.2% correction point of the April-June move down. The morning’s strength provided longs with a nice opportunity to take a quick profit on their positions. Not only did has the c/p resistance been tested and broken over but so did the 34-day contract M/A at around 44.96. Therefore, it is advised to be flat again and look for levels to re-establish long positions

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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.