Technical & Fundamental Oil Reports Specialists

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The 13-day M/As are still important

Published Thursday, October 30th, 2014

Yesterday’s trading started on a slightly negative note as the contracts had not settled over all of the daily short-term M/As on Tuesday. The ICE contract popped over its 13-day after the open and, as it turned out, it never looked back. The NYMEX contract did not waste much time joining ICE as it gradually got stronger in the afternoon and broke above the 13-day M/A but finally it failed to settle above. It has, however, jumped over it once again this morning. In other words, ICE has turned bullish and NYMEX is doing its best to do so.

December ICE: The technical picture is straightforward on this contract. All the daily short-term M/As are below the price action and the daily slow stochastics is positive. Shorts went flat yesterday, latest by the close, and bulls have probably started to build up length. Longs are looking to take profit on a test of the 57.40/57 range resistance area and go long again if this level is settled above. Should that happen the 38.2% correction point of the September-October downtrend at 58.40 will be the next target.

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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.