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Make or break day

Published Wednesday, January 14th, 2015

Both contracts strengthened yesterday and neither of them closed above the crucial 13-day M/As. This morning, however, they are above these resistances at the time of writing. The formula seems straightforward: get rid of any short positions now and go long on closes over these resistances or sell short if they are failed to be settled above.

 

February ICE: The 13-day M/A is at 48.55. On a close above it the next objective on the upside is the 38.2% correction point of the November-January downtrend from 62.00 to 45.20 at 51.62 and above that the 100 and 34-day continuation M/As at 52.73/52.86. A failure to close over the 13-day M/A should push the price of this contract down to the long-term correction point at 47.18 and the 8-day M/A at 47.10 and a close below the latter will green-light the former downside objective at 45.55, the continuation high on June 16, 2014. Watch the 13-day M/A for guidance; a close above it is bullish and a settlement below this level is bearish.

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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.