Technical & Fundamental Oil Reports Specialists

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Expect a test of resistances

Published Monday, August 11th, 2014

Both contracts finished the week on positive note as far as weekly technicals are concerned. ICE closed above all of its short-term weekly M/As whilst both the 5 and 100-week M/As were below Friday’s settlement level on NYMEX. This morning follow-through buying is pushing the prices of the contracts higher.

September ICE: The highest of the daily short-term M/As, the 13-day, was closed over on Friday. It is currently at 41.46. The odds are on higher numbers whilst it is acting as a support. This morning the 41.75/90 range resistance has been broken over. It was advised in Friday’s report to go long on a close over this level. It would probably make sense to start buying over the course of today whilst above this area and go fully long if settled over. Losses should be cut below the aforementioned 13-day M/A support and profit should be taken when the 61.8% correction point of the June-July downtrend from 47.55 to 36.30 is tested.

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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.