Technical & Fundamental Oil Reports Specialists

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The contracts are not bearish but still more negative

Published Wednesday, October 8th, 2014

The view from yesterday has not changed. The contracts are still bound by their respective ranges and the odds are still more on testing supports than resistances. Closes below supports will be considered as very negative.

November ICE: The contract settled below the 54.75 range support for the second consecutive day. Whilst this is the case a test of the 53.13 range support is expected. This is the bottom end of the range and a close below this level will be very bearish. It is the lowest print on the November contract and on a close below the contract should head to the continuation gap at 51.50 with the potential to fall as low as 48.94, a range support and the continuation low on September 10. Should the aforementioned 54.75 range be closed back over the short-term daily M/As are expected to be in sight tomorrow. A rally to the 8-day and the 13-day is a sell.

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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.