Technical & Fundamental Oil Reports Specialists

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The contracts are becoming increasingly range-bound

Published Wednesday, August 13th, 2014

None of the contracts were particularly convincing yesterday in confirming their underlying trends, if there is any, therefore it would only make sense to establish trading ranges on them. Despite this developing range-bound nature, NYMEX is still slightly more on the positive side whilst it is recommended to stay put on ICE and only sell short/go long if support/resistance were closed below/over.

September ICE: Would you buy whilst the 5 and 13-day M/As at 41.28 and 41.31 are above the current price level? Or perhaps more importantly if the 41.75/90 range resistance is not closed over? Probably not. On the other hand, you would quickly change your mind if the latter were conclusively settled over. In that case you would look for a rally up to the 61.8% retracement level of the June-July downtrend at 43.21. Would you sell whilst the 8-day M/A at around 40.78 is acting as support? Probably not.

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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.