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We need some impetus – The contracts are undecided

Published Thursday, September 18th, 2014

When we say undecided we mean neutral-to-gently-positive. The reason for this is that the prevailing short-term trends have been up on both contracts, the daily short-term M/As were not closed below yesterday and the daily slow stochastics are still positive.

October ICE: The view from yesterday remains unchanged. Dips to the daily short-term M/As are still probably buys. They are at 51.00 (5-day), 50.62 (13-day) and 50.40 (8-day). Only a close below the lowest of them will turn the technical picture negative. In that case no long positions should be held and it will even be recommended to short the contract. On such a move the 49.58 correction point support and possibly the 48.94 range support will be tested in the near future. At the moment, this scenario is the more unlikely one. The contract is picking up this morning and the nearest range resistance could be under pressure shortly.

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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.