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ICE turned negative – NYMEX still is

Published Monday, August 4th, 2014

We had a demonstration of the importance of the 13-day M/As on both contracts but for differing reasons. On ICE this support was supposed to hold on Friday. It did not and the contract is duly nose-diving this morning. On NYMEX this resistance was tested but not closed above and this contract settled lower and is drifting further south this morning.

September ICE: By the close on Friday the 13-day M/A was closed a few points below. The technical picture turned negative. This morning the 34-day contract M/A at around 40.51 has been broken below. The question now is that where should those who sold short based on Friday’s close take profit. The first and most obvious level is the 38.63/40 area. The former is the 34-day continuation M/A and the latter is a range support. Shorts should cover when the higher of them is approached and sell again if the lower of them is closed below. In that case the next objective is the 36.30 range support.

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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.