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Resistances have been tested but not closed above

Published Wednesday, September 17th, 2014

The contracts behaved in similar fashion yesterday. We saw a run up to the nearest resistance areas which provided longs with an opportunity take profit on at least part of their positions. The drift back that followed the failure to punch above these resistances was more serious on ICE than on NYMEX. Nevertheless the contracts remain more on the positive side – for the time being.

October ICE: The resistance in question is the 52.50 level. It is the daily high on September 4. This level was tested with a high at 52.40. The contract settled more than 100 points lower than this area but the good news for those who are looking to go long again is that a.) no daily short-term M/As were settled below and b.) the daily slow stochastics is still positive. These M/A supports are currently at 50.71 (13-day), 50.66 (5-day) and 50.40 (8-day). Maybe a dip to the former two is a buy but the mini-uptrend would be considered to be over if the latter is settled below. Should that happen the contract should head to last week’s low at 48.94.

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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.