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Test of supports on ICE – NYMEX is neutral to bearish

Published Tuesday, July 15th, 2014

August ICE: The contract corrected viciously to the upside yesterday. This correction took the price briefly over the 13-day M/A resistance but the settlement was a few points below this level. This morning we are experiencing softer numbers. Those who sold into yesterday’s rally have a clear game plan. It probably makes sense to take profit on half of the positions when the 5 and 8-day M/As are tested. The former is currently at 36.13 and the latter is at 36.11. The low this morning has been 36.29 so far. Should this support area be broken below we are likely to fall down to the strong range support of 35.25/10. These are the daily lows on the August contract from last Monday and Tuesday. Shorts are recommended to go completely flat there and only sell short again if this support were closed below. Such a move would green-light the next downside target of 33.45, the monthly low in February 2009.

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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.