Technical & Fundamental Oil Reports Specialists

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Still be flat on both contracts

Published Monday, July 14th, 2014

After approaching downside objectives on Thursday and Friday morning the contracts consolidated somewhat on the the last trading day of the week with ICE closing unchanged on the day and NYMEX finishing stronger. As a result no supports were closed below and no sellable resistances were tested. The advice from Friday is still valid. It is recommended to be flat and short the contracts on a weak performance today or on rallies to resistances.

August ICE: The contract is trading higher this morning after testing but failing to close below the 35.25/10 range support. This area is the daily low on last Monday and Tuesday. Should it be settled below, lower numbers will be expected. In that case the next objective on the downside is 33.45, the monthly low back in February 2009. Judging by Friday’s and this morning’s performance it is unlikely to happen in the near future. Instead we might see further upside correction. The 8-day M/A resistance is being put under pressure at the time of writing. It is at 36.13 and on a close over a test of the 13-day M/A cannot be excluded.

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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.