Technical & Fundamental Oil Reports Specialists

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The contracts are pausing for breath. Or are they?

Published Tuesday, June 10th, 2014

Both contracts bucked their respective prevailing trends and they continue to do so this morning. It is too early to say that these trends are reversing but it is probably best to be conservative and take some precautionary measures. If yesterday’s and this morning’s price movements prove to be a trap there will still be opportunities to get back in the market.

July ICE: The settlement was right on the crucial 40.35 correction point level. The contract has rallied above it in the early hour of today. Downside objectives are on hold. Since 40.35 has been broken over it would make sense to liquidate half of any short positions. These then can be re-established should the above-mentioned retracement number be closed back below today. In this case profit-taking is recommended just above yesterday’s low of 38.55.

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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.