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Both contracts are correcting

Published Wednesday, July 30th, 2014

September ICE: The contract failed to get up to its next target on the upside after four days of rally. It peaked out at 45.00 with its objective at 45.60/65. The sell-off that followed this failure was rather intense and took the price of the contract below the 61.8% retracement level of the latest downtrend at 43.21. Longs have probably liquidated their positions and are now looking for levels to re-establish these positions. They would do so if the 43.21 correction point resistance was settled back over. In that case they are advised to take profit at the 44.71/80 range resistance area. In case of further weakness today they would also be tempted to put some length on if the 8-day M/A support at 41.21 were approached. These longs should then put some money in the bank when the 43.21 c/p resistance is in sight or protect the position if the 13-day M/A at around 40.54 was broken and settled below.

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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.