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Patience on both contracts

Published Monday, July 28th, 2014

A big rally pushed the price of the ICE contract much higher on Friday and the NYMEX contract lower. The former tested but closed below its c/p resistance. The latter did not test its downside objective but it has done so this morning. As a result it is recommended to be flat on both contracts. From today we shall concentrate on the September contracts.

September ICE: Friday’s rally took this contract well above the daily short and medium-term M/As and above assorted c/p resistance. Only the 61.8% correction point of the latest downtrend halted the rally. It is at 43.21 and was briefly broken above before the contract settled below this resistance. Those who are looking to go long again should do so if this resistance is settled above. On such a move the next objective on the upside is the gap at 45.60, left on the September chart on June 17. The trend is up therefore dips are also deemed as buying opportunities. The first such buyable dip is the 8-day M/A at around 40.28.

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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.