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ICE has turned bearish – NYMEX still is

Published Thursday, August 21st, 2014

September ICE: As it turns out Tuesday’s weakness was more than just a correction. The selling continued yesterday and the contract closed below the lowest of its short-term daily M/As, the 13-day which is currently 41.72. The daily slow stochastics is now firmly pointing south. The latest uptrend that started at the beginning of the month is now “officially” over. Shorts are now contemplating profit-taking levels as they also try to figure out where to protect their positions in case the negative technical view proves to be incorrect for whatever reason. The answer to the second part of the question is straight forward. It is the aforementioned 13-day M/A that should be used as a stop level. A close back over it would mean that the contract will be back in neutral territory and would only turn bullish again if the 5-day M/A at around 42.39 were settled above. The downside is a bit trickier. The 34-day contract M/A is around 40.48.

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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.