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More patience is needed on both contracts

Published Monday, September 8th, 2014

We did not get any wiser from Friday’s price action as far as the next legs of the contracts are concerned. Neither supports nor resistances were broken. The daily losses were not big enough to encourage bears to sell short and the short-term M/A resistances have not been broken and closed over. At a glance it seems that both the contracts are still more on the negative side but it is only reasonable to wait for one more negative close to confirm this view.

October ICE: The 8-day M/A was closed below but the 13-day M/A was not. The former is currently at 50.97 and the latter is at 50.27. This is the immediate range. A close over the 8-day is a buy for a rally up to 52.50, the high of last Thursday. A close below the 13-day M/A is a sell for a fall down to 49.00, the daily low from last Wednesday. Looking at the medium-term technical picture the daily chart tells us the story.

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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.