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Targets have been hit on both contracts

Published Monday, August 18th, 2014

The headline sums it all up. The upside target on ICE was reached on Friday and the contract closed below it. The downside objective on NYMEX has been flirted with this morning and this contract has rebounded off the support. ICE is still more positive and dips to supports or closes over the resistance are a buy. NYMEX is the mirror image of ICE – rallies to resistances or closes below the support level are deemed to be a sell.

September ICE: The target in question was the daily high on the September contract on July 29 and is at 45.00. It was matched on Friday. Should it be settled over the next level the contract will run up to is the 100-day M/A at 45.48 and the gap at 45.60. Above this gap the July high at 47.55 is likely to be targeted. The trend is currently up therefore dips are viewed as buying opportunity. The nearest one is the 8-day M/A at around 42.30. This is some way below the current price action and the odds of falling down there will increase if the 61.8% correction point of the June-July downtrend is settled below today.

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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.