Technical & Fundamental Oil Reports Specialists

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13-day M/As are still above the price action

Published Tuesday, January 27th, 2015

Neither of the contracts got down to their support levels where covering short positions was recommended. On the other hand, important resistance were not closed above either. As a result shorts are probably still running their positions. We assume that they have rolled from February into March as the NYMEX contract expires tomorrow and ICE on Thursday. We are, therefore, going to concentrate on the March contract.

March ICE: We could, effectively, copy yesterday’s commentary after adjusting the February support/resistance levels to March. Those who are running short positions are still advised to take profit if the nearest support is tested. On the March contract it is the low of last week and is at 43.35. A close below this support is bearish, it would put bears firmly back in control and as such it would be a sell. In that case the contract will be expected to test the 40.51 range support level.

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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.