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Pre-weekend correction on both contracts?

Published Friday, July 18th, 2014

The contracts moved in the opposite direction to yesterday with ICE gaining and NYMEX losing ground. Both contracts visited their nearest targets therefore it only makes sense to be flat and wait for developments. Being Friday we might just experience some kind of pre-weekend retracements before the original trends resume early next week.

August ICE: After closing right on the 13-day M/A on Wednesday the contract not only tested the 37.70/75 range resistance level but broke above it. Once over this resistance there was only one way for the contract to go. It jumped quite aggressively up to the 38.2% correction point of the June-July downtrend at 39.65. This is where bulls ran out of ammunition and started to take profit pushing the price of the contract well below this c/p resistance by the close. The trend has turned, it is up but at the moment and it is recommended to be flat and wait for developments. Needless to say that a close over the aforementioned retracement level resistance is a buy.

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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.