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Watch the 13-day MA on both contracts

Published Thursday, July 31st, 2014

The technical picture seems straightforward. Both contracts are still in correction phases. The price action around the 13-day M/As will provide us with an answer whether the prevailing trends will continue or reverse. A close below this support on ICE would mean the end of the uptrend and vice versa on NYMEX.

September ICE: The contract tested the 8-day M/A support yesterday and has fallen below it this morning. Longs are advised to take profit if the 61.8% retracement level of the latest downtrend in in sight. It is at 43.21. On the downside, losses on these long positions should be cut on a break and close below the 34 and 13-day M/As. They are at 40.69 and 40.62 respectively. In that case the uptrend that began at the beginning of July would be reversed and the contract will be expected to go down to the 38.50/40 range support area.

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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.