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Test of resistance on ICE – support on NYMEX

Published Wednesday, July 23rd, 2014

August ICE: The good news for the bulls is that the 13-day M/A support held yesterday and the 8-day M/A resistance was closed above. The slightly bad news for them is that the latter is above the current price action. It is at 37.45 at the moment. On balance, it is still worth keeping long positions and look for resistances to be under further pressure. The sole reason to say this is that the 13-day M/A at around 36.79 is still acting as support. It might make sense to get rid of half of any long positions on an intra-day break below this support and go completely flat if it were settled below. In that case the technical picture will flip negative and the test of the 35.10 range support will be expected. On the upside a break over the 8-day and preferably the 5-day M/A at around 37.70 should push the price of the contract up to the 34-day continuation M/A at around 38.63.

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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.