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Bearish order has been restored

Published Thursday, July 10th, 2014

It seems that both contracts are bearish again and have valid targets below their respective price levels. NYMEX has never really threatened to turn neutral but Tuesday’s rally and yesterday’s initial strength on ICE might have made bears concerned. They can relax now as this contract finished the day lower, too.

August ICE: There are probably two types of shorts in this contract: those who held their nerve during Tuesday’s rally and yesterday morning’s strength and remained short and those who went flat over the last two days and sold into yesterday’s jump up to the 8-day M/A. Both groups are happy now and they presumably expect further downward pressure and the eventual test of the nearest downside objective. This target is the 35.25/10 range support area, the daily lows from Monday and Tuesday. It is recommended to cover short positions when the higher of them is tested and re-establish them when the lower of these is broken below on an intra-day basis

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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.